Favourite Nephew or Niece Relief
Favourite Nephew or Niece Relief allows your nephew or niece to be treated as your ‘child’ when you give them a gift or inheritance. This is subject to conditions.
Where the relief applies, your niece or nephew may use the Group A threshold of €335,000 instead of the Group B threshold of €32,500
As a result, this may lead to large reduction in gift or inheritance tax owing.
Your nephew or niece is a child of your:
- brother
- sister
- brother’s civil partner
- sister’s civil partner.
Conditions for the relief
Your nephew or niece must have worked for you for the five years immediately before they receive the gift or inheritance either:
- for 15 hours per week in a small business (run by you and your spouse or civil partner) /or/
- for 24 hours per week in a larger business (that is, business where there are other employees).
The relief applies only to assets used in the business. It does not include investment assets which are in the Group B tax-free threshold.
Subject to qualifying conditions and criteria
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie