Capital Acquisitions Tax

Individual cases can vary but as a general rule, a child can get⁺ from a parent, as per present Revenue rates the sum of €335,000 before any tax is payable, and the balance is payable at 33%. Any previous gifts are ‘aggregated’ so anything given by the parent to the child dating back to 1991 is counted.

Thus if a parent gives a child land⁺⁺ worth €400,000 in 2020 and never gave the child anything before, the child pays tax on €65,000, and ends up paying €21,450.

If the child had received a gift of €50,000 in 2010, then they would have €285,000 ‘left’ on their Tax Free threshold and would – after getting a house worth €400,000 – be taxed on the €115,000, ending up with a tax bill of €37,950.

The same methodology applies with gifts between siblings/aunts/nephews except the amount which is tax free is €32,500.

Gifts from relatives more remote or friends have a tax-free threshold of €16,250

Transfers of lands as gifts can also attract Stamp Duty.

⁺ The rules of Capital Acquisitions Tax apply equally to gifts made between persons living and bequests/inheritances on death. There is no Stamp Duty on inheritances.

⁺⁺ With transfers of certain Agricultural and Business assets there may be reliefs available which significantly reduce the exposure of a beneficiary to Capital Acquisitions Tax/Stamp Duty.

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The information on this site is provided as a guide only and is not professional advice, including legal advice. It should not be assumed that the guidance is comprehensive or that it provides a definitive answer in every case.

The information on this site is provided as a guide only and is not professional advice, including legal advice. It should not be assumed that the guidance is comprehensive or that it provides a definitive answer in every case.