Tax on gift from Sibling

N

NDK

Registered User
Messages
7
Hi, Hope someone can help me.
My brother inherited the family home which we were all happy with.
I'm currently attempting to purchase my first home and he wishes to give me 60,000 towards it.
I know the thresholds for gift taxes have changed in ireland over the last few years
Can I avoid paying tax on this?, I'm buying the home with my girlfriend and so we would all be happy to put a portion of the money into her account and the rest into mine if it would help us pay no/little tax.
What way can I pay the least amount of tax on this gift of 60,000?

Thanks in advance.
NDK
 
If you have had no other gifts or inheritances in the Class B (briefly, close relation but not parent) since 05/12/1991 you can accept up to €33,500 from your brother CAT free.
Your girlfriend, if she has received no other gifts in the "stranger" class C since 05/12/1991 can have up to €16,750, before CAT applies.
This covers €50,250 of the proposed €60,000. The rate applying to the balance is 30%, €2925.
As you would have exceeded 80% of the threshold, you would both have to make returns and pay the CAT before 31/10/12 if the gift is received before 31/08/12. If received between 01/09/12 and 31/08/13 the return date is 31/10/13.
 
Or you can call it a loan that you simply haven't paid back yet - that seems to be accepted if you are questioned about it down the line!
 
Thanks Gervan,
I have never received any gift previously but my Girlfriend did receive 20K when her dad passed away.
I believe this is irrelevant as it was from a parent and the threshold there is much larger?
If we reduced the Gift to 50K so, would I pay no tax?
I appreciate the advice,
 
Gervan said:
If you have had no other gifts or inheritances in the Class B (briefly, close relation but not parent) since 05/12/1991 you can accept up to €33,500 from your brother CAT free.
Your girlfriend, if she has received no other gifts in the "stranger" class C since 05/12/1991 can have up to €16,750, before CAT applies.
This covers €50,250 of the proposed €60,000. The rate applying to the balance is 30%, €2925.
As you would have exceeded 80% of the threshold, you would both have to make returns and pay the CAT before 31/10/12 if the gift is received before 31/08/12. If received between 01/09/12 and 31/08/13 the return date is 31/10/13.
Click to expand...

As far as I understand it...... both you and your girlfriend can also receive €3000 in any one year as gifts without any CAT implication. So there's another 6K to bring you closer to the magic number. Why not just take €56,250 this year between you and your girlfriend. You would have no CAT to pay.
Take the balance of the 60K next year (split between you both as a gift to use next year's allowance).
 
Thanks, Barney.
Thats sounds like the best option.
Appreciate the help.
 
You must log in or register to reply here.
Back
Top