A. The small-gift exemption allows anyone to gift up to €3,000 in any tax year to anyone else.
What this means is that a beneficiary can receive up to €3,000 tax-free in any one year from any donor, or even multiple donors, and this gift will not impact on the amount that they can receive tax-free by way of larger gifts/inheritances in the future.
A common use for this ‘small gifts exemption’ is for grandparents, aunts, and uncles to gift money to children. Each adult can gift each child up to €3,000 in any year with no tax liability for the child and without the amount of the gift reducing the child’s tax-free threshold for future gifts/inheritances.
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