Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

8 Disponer in certain connected dispositions

Summary

This section seeks to prevent tax avoidance by gift-splitting. Where 2 or more gifts are made by successive disponers within 3 years, the second or subsequent gift is deemed to have been made by the original disponer to the ultimate beneficiary. Genuine cases are excluded from the scope of the section.

Details

(1) Where 2 or more gifts are made by successive disponers within a period of 3 years, the second or subsequent gift is deemed to have been made by the original disponer to the ultimate beneficiary.

Example

A gifts property to B. B gives it to C who, in turn, gives it to D. The gifts are made within 3 years. C and D are deemed to take their gifts from A.

(2) The section does not apply where the second or subsequent disposition was not made with a view to enabling or facilitating the making of the first disposition or the recovery of the cost of that disposition.

Relevant Date: Finance Act 2015