Small Gift Exemption

Q. I am planning on gifting some cash to my grandchildren and have heard that I can give them a certain amount tax-free. Is this true?  

6th July 2018

A. Under Capital Acquisitions Tax (CAT) rules the first €3,000 taken by each of your grandchildren from you in any calendar year will not be liable for tax in that year and also will not be taken in to account in any CAT computation in future years.

Therefore if you were planning to gift them an amount in excess of €3,000 it would be advisable to spread this gift out over a number of years in order to avail of this small gift exemption.

It should also be noted that this exemption applies only to gifts and not to inheritances.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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Call us today to make an appointment at your local office

1890 98 76 09

Or submit an enquiry