What is exempt from Inheritance tax or gift tax ?
What is exempt from Inheritance tax or Gift Tax ?
The following benefits are exempt from gift tax or inheritance tax:
- Gifts or inheritances from a spouse or civil partner
- The first €3,000 of the total value of all gifts received from one person in any calendar year is exempt. This does not apply to inheritances.
- Payments for damages or compensation
- Benefits used only for the medical expenses of a person who is permanently incapacitated due to physical or mental illness (pdf)
- Benefits taken for charitable purposes or received from a charity
- Winnings from a lottery, sweep-stake, game, or betting
- Retirement benefits and pension and redundancy payments are not usually liable to Gift Tax. If the employee however is a relative of the employer, or the employer is a private company and the employee is deemed to control the company, Revenue may disallow this exemption if they consider the payment excessive.
- Reasonable support for the maintenance or education of a child or spouse/civil partner.
Any queries on the above please do not hesitate to contact me on 091 763817 or email me at oliver@taxreturnhelp.ie