PART 9 EXEMPTIONS

Overview

This Part of the Act deals with exemptions from tax. Among the principal exemptions are gifts and inheritances for public or charitable purposes, gifts and inheritances of heritage property, certain inheritances taken by parents, gifts and inheritances of certain securities, gifts and inheritances from spouses, the proceeds of certain insurance policies taken out to pay gift tax and inheritance tax and gifts and inheritances which consist of the principal private residence of the person taking the gift or inheritance.

69 Exemption of small gifts

Summary

This section provides that the first €3,000 of the total taxable value of all taxable gifts taken by a donee from the same disponer in any year will be disregarded for the purposes of tax. The section also applies to a gift which becomes an inheritance by reason of the death of the disponer within 2 years of the disposition.

Details

(1) “relevant period” means the period of 12 months ending on 31 December in each year.

(2) The first €3,000 of the total taxable value of all gifts taken by a donee from one disponer in any relevant period is exempt from tax and is not taken into account in computing tax (i.e. is not aggregated with subsequent gifts or inheritances for the purpose of calculating tax on the later gift or inheritance).

(3) The exemption is granted for any gift which becomes an inheritance by reason of the death of the disponer within 2 years of making the disposition.

Relevant Date: Finance Act 2015