Tax on Gifts

D

DPC

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My SSIA matures this month and i would like to give a family member a gift of 10,000. This will not be a loan and i do not expect nor want re-payment. Can i just give them the 10k thriugh a simple on line transfer or are there any tax issues associated with this. Thanks
 
Yes there are tax implications to this.

From a CAT point of view each person has a lifetime cumulative threshold that they may receive from a certain category of person. The limit depends on the relationship between you and the person receiving the gift. If the person has not received any other gifts from a person in the same class threshold as you then that person will not pay any CAT on the gift. If they have received a gift previosly (from the same class threshold) then there may be a CAT liability for that person.

See [broken link removed].
 
Thanks for the reply Newby. So am i correct in saying that a €10k gift to a parent does not have to be declared to revenue as it is under the threshold and i can just transfer it into their account without informing revenue
 
A return will have to be filed with the Revenue in certain circumstances even when the gift has not exceeded the CAT threshold, typically where the gift exceeds 80% of the applicable CAT threshold a return must be filed.
 
Remember that you can gift € 3,000/year to anyone with no gift tax implications at all for the recipient - it's the recipient who pays the gift tax not the donor.
 
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