Does gift tax apply for money loaned to parent and related?

tiswhattis

About 5 years ago I gave my mother €13k via bank transfer as a gift so that she could do up her kitchen. She never used it and instead she kept it in her bank account for me for the future.

My partner and I are now looking to start applying for a mortgage and my mum would like to send the money back to me to help with the costs.

I have seen online that any amount a parent gifts over €3k per year will be taxed. Can we avoid this tax if we can prove that it was my money in the first place? (Proof of bank transfer over and back)

lau1247

tiswhattis wrote: »

About 5 years ago I gave my mother €13k via bank transfer as a gift so that she could do up her kitchen. She never used it and instead she kept it in her bank account for me for the future.

My partner and I are now looking to start applying for a mortgage and my mum would like to send the money back to me to help with the costs.

I have seen online that any amount a parent gifts over €3k per year will be taxed. Can we avoid this tax if we can prove that it was my money in the first place? (Proof of bank transfer over and back)

Not sure about proving but I think from revenue standpoint it will come out of your cumulative parent to child threshold in future.

Why don't you try

3k mother to you
3k mother to him

The rest from your mother to brother or sister, then back to you without triggering CAT

Water John

Up and down generation is fine, the threshold is high. Siblings the threshold is low.