Gift splitting - explanation

Audioh8

Hello and thank you in advance. I am looking for clarity and not financial advice.

My father has received a large gift from a non-blood relative and wishes to give some of the funds to me (his child). I have not used any of the 335k threshold in my lifetime.

Will both my father and myself have to pay the full 33% on the amount due to the fact the gift is given within 3 years? Or how does this work exactly?

I find the information online to be quite vague.

Thank you again.

Geuze

I presume you have read section 4 below:

https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/how-do-you-calculate-cat.aspx

Mellor

https://www.boards.ie/discussion/2058365213/gift-splitting-explanation

I'm sure what you find vague? You've identified the fact it is gift splitting and the impacts exactly.

It's not clear what relationship this relative is. But most likely it's group C. Exemption is €16,250

Audioh8

https://www.boards.ie/discussion/comment/122524015#Comment_122524015

Thank you, indeed you are correct in assuming Group C. My confusion lies with the example shown on Revenue. It outlines that tax will be paid once as the threshold for Group A covers up to the 335k mark.

The example appears to show that you cannot pass a gift through groups to avoid tax (Which makes sense).

I am however concerned with paying the tax twice essentially if my father was to say give me 10% of a gift received, not trying to not pay it if that makes any sense.

Mellor

https://www.boards.ie/discussion/comment/122527184#Comment_122527184

I think you need to recheck the example (it's posted above). There is no mention of 335k.
Can you post what you are looking at?

I am however concerned with paying the tax twice essentially if my father was to say give me 10% of a gift received, not trying to not pay it if that makes any sense.

You don't pay tax twice. It's paid once based on who gave the gift to who.