Revenue to crack down on parents’ tax-free gifts

The Revenue Commissioners has fired a warning shot to parents looking to avail of loopholes in the law to gift their offspring expensive items tax free.

According to a newly issued guidance from Revenue, offspring who are in receipt of expensive gifts from their parents — anything from mortgage contributions, honeymoons, and accommodation/rent-free dwelling in secondary property assets — could be liable for gift tax payments.

Revenue issued the update following up on restrictions made, in the latest Finance Bill, to exemptions from capital acquisitions tax which, typically, imposes a charge on individuals who receive gifts and inheritances where the value exceeds that individual’s lifetime tax-free threshold.