Gift from Parents

A. If you receive a gift, you may have to pay Capital Acquisitions Tax (CAT) on it.

The gift is taxed if its value is over a certain limit or threshold. Different tax-free thresholds apply depending on the relationship between the person giving the gift and the person receiving the gift.

As you are receiving the gift from your parents this falls within the Group A threshold which is currently €310,000.

What this means is that you can receive gifts/inheritances totalling €310,000 from your parents in your lifetime without having to pay any CAT.

Any previous gifts that you would have received from your parents would have to be added to the current gift to ascertain if you have breached the threshold.

If the amount you receive in your lifetime from your parents exceeds the €310,000 limit then you will have to pay tax at a rate of 33% on the excess e.g. if the total gifts you received from your parents in your lifetime was €320,000 then you would pay tax of (€320,000 - €310,000) x 33% which equals €3,300

Date published 18 Jul 2018

This article is intended to inform rather than advise and is based on legislation and practice at the time. 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 article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.