You also have an annual exemption amount of €3000 which doesn’t come off your threshold. Anything above the €335k is taxed at 33%. Dwelling House relief may also be available in certain circumstances so the house received as an inheritance isn’t taxed and and isn’t considered part of your category threshold.
The threshold is set to this value so that children who inherit their parents houses aren’t forced to sell them to pay a tax bill. €335k was the average price of a property when it was initially set, which is now outdated.
I dunno.. for me “life changing” means I wouldn’t have to work ever again.
330k would disappear fairly quick, especially if I’m trying to run homes in Dublin, Castlebar and Brussels.
Open a bank account in your kids name and have parents write cheque to kid deposit it or some of it there 😁
I think its about where you are in life.
In my 20s, 330k would have been 100% life changing. Buy a house or quit my job, faff around travelling for a few years, maybe try a business venture or two.
Now in my 40s, 2 kids, house that’s big enough in an area I like, career that isn’t huge money but I’m happy in, we have 1 car and it’s a great car . . .
330k would make my retirement a lot more comfortable, maybe we’d do a few fancy holidays but at the end of the day we’d still live here & the kids would still have school every day & I wouldn’t change jobs. 330k would be wonderful but not life changing.
Is it possible for a parent to sell a 300k house to their kids for 10k and avoid inheritance tax this way?
Edit: don’t mind me!
Tbf very few children actually get the full 330,00, a lot of money goes to nursing homes and solicitors.
If your parents leave you their house worth 510k, only the first 330k is tax free, everything after that is taxed at 33%. That’s leaves a 60k tax bill which isn’t a small figure.
Worst thing you can do is leave a friend your house. The tax free threshold is less than 15k. Meaning they’ll probably have to sell immediately just to cover the tax owed on it.
From a Fine Gael fanboy in case anyone is interested/unsurprised.
Part 11 agricultural relief lads. Tax is for townies.
Did someone post that on this sub?
330k would change my life dramatically. How can anyone say that it wouldn’t? 🤦♂️
You’d hardly be able to quit your job for life with it, you could maybe clear your debt or buy a small house or an investment that might bring you in an extra 10-20k a year. Significant but not life changing.
no tax on that amount
If you’re already pretty comfortable (which you likely are if mummy and daddy have €330k for you to inherit). €330k is “I no longer have a mortgage” so I’m doing all the same stuff I just have more money free, to save a bit more, to buy a bit nicer car, bit nicer holidays, give a few more quid to the kids.
“Life changing money” then is not only do I never have to work again, I have enough passive income that I can live comfortably and have the lifestyle to fill the time doing interesting stuff, traveling, eating out, sports *and* never stress. That’s more than a few million. €5million might do it but honestly if you could make the cheque for €10million, payable to cash, then we’ll be good.
I’ll tell ya, you try it some time!
If you live in rural Ireland it’s a lot. In Dublin it’s not.
That fella is an absolute dose over on twitter and no surprises a blueshirt to his core. Peak out of touch.
Hey don’t knock it, that’s 6 months rent covered for some people.
Not life changing if u already have a HAPE of cash
330k would change my life dramatically.
I guess it depends on how you define “life changing”, but it would pretty much wipe out my mortgage so I’d consider that fairly life changing tbh.
Half of that means I can buy a house and instantly have an extra £600 a month instead of paying off someone else’s mortgage. That would change my life significantly.
Considering I can pay off my (quite substantial) loan, pay off my mortgage and afford to insulate it properly and fix the piping etc *and* have change left over, I’d argue 330k is life changing for me (and I’d wager more than a few others).
Also, it hasn’t had tax paid on it.
Imagine knowing the insufferable entitled arsehole who wrote that.
Fucking idiot.
0. Inheritance is only a thing that happens when somebody dies and they leave you cash or assets in their will. If somebody is alive and gives you cash or assets for free it is a gift, not an inheritance. There is no such thing as early inheritance.
1. Inheritance is a privilege. Many people / most people do not inherit anything or inherit a minimal amount of money, especially if you’ve multiple siblings.
2. If you are gifted 300,000k aged 18-35, rather than aged 45-65 when your parent typically dies (if you’re lucky), then you are privileged bbecuase you are given a head start early in liife.
29 comments
If someone gave me 330k I’d probably just blow it on hats.
The 335K gift is a thing all right.
Generally it’s eaten up if you inherit a property from your parents.
Otherwise with them dying you’d probably just inherit a tax liability.
€335k is the lifetime threshold for group A.
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-thresholds.aspx
You also have an annual exemption amount of €3000 which doesn’t come off your threshold. Anything above the €335k is taxed at 33%. Dwelling House relief may also be available in certain circumstances so the house received as an inheritance isn’t taxed and and isn’t considered part of your category threshold.
The threshold is set to this value so that children who inherit their parents houses aren’t forced to sell them to pay a tax bill. €335k was the average price of a property when it was initially set, which is now outdated.
I dunno.. for me “life changing” means I wouldn’t have to work ever again.
330k would disappear fairly quick, especially if I’m trying to run homes in Dublin, Castlebar and Brussels.
Open a bank account in your kids name and have parents write cheque to kid deposit it or some of it there 😁
I think its about where you are in life.
In my 20s, 330k would have been 100% life changing. Buy a house or quit my job, faff around travelling for a few years, maybe try a business venture or two.
Now in my 40s, 2 kids, house that’s big enough in an area I like, career that isn’t huge money but I’m happy in, we have 1 car and it’s a great car . . .
330k would make my retirement a lot more comfortable, maybe we’d do a few fancy holidays but at the end of the day we’d still live here & the kids would still have school every day & I wouldn’t change jobs. 330k would be wonderful but not life changing.
Is it possible for a parent to sell a 300k house to their kids for 10k and avoid inheritance tax this way?
Edit: don’t mind me!
Tbf very few children actually get the full 330,00, a lot of money goes to nursing homes and solicitors.
If your parents leave you their house worth 510k, only the first 330k is tax free, everything after that is taxed at 33%. That’s leaves a 60k tax bill which isn’t a small figure.
Worst thing you can do is leave a friend your house. The tax free threshold is less than 15k. Meaning they’ll probably have to sell immediately just to cover the tax owed on it.
https://twitter.com/Conor1960/status/1600604306830462994?t=WT3vqSJWaIL8nWp30_gXkg&s=19
From a Fine Gael fanboy in case anyone is interested/unsurprised.
Part 11 agricultural relief lads. Tax is for townies.
Did someone post that on this sub?
330k would change my life dramatically. How can anyone say that it wouldn’t? 🤦♂️
You’d hardly be able to quit your job for life with it, you could maybe clear your debt or buy a small house or an investment that might bring you in an extra 10-20k a year. Significant but not life changing.
no tax on that amount
If you’re already pretty comfortable (which you likely are if mummy and daddy have €330k for you to inherit). €330k is “I no longer have a mortgage” so I’m doing all the same stuff I just have more money free, to save a bit more, to buy a bit nicer car, bit nicer holidays, give a few more quid to the kids.
“Life changing money” then is not only do I never have to work again, I have enough passive income that I can live comfortably and have the lifestyle to fill the time doing interesting stuff, traveling, eating out, sports *and* never stress. That’s more than a few million. €5million might do it but honestly if you could make the cheque for €10million, payable to cash, then we’ll be good.
I’ll tell ya, you try it some time!
If you live in rural Ireland it’s a lot. In Dublin it’s not.
That fella is an absolute dose over on twitter and no surprises a blueshirt to his core. Peak out of touch.
Hey don’t knock it, that’s 6 months rent covered for some people.
Not life changing if u already have a HAPE of cash
330k would change my life dramatically.
I guess it depends on how you define “life changing”, but it would pretty much wipe out my mortgage so I’d consider that fairly life changing tbh.
Half of that means I can buy a house and instantly have an extra £600 a month instead of paying off someone else’s mortgage. That would change my life significantly.
Considering I can pay off my (quite substantial) loan, pay off my mortgage and afford to insulate it properly and fix the piping etc *and* have change left over, I’d argue 330k is life changing for me (and I’d wager more than a few others).
Also, it hasn’t had tax paid on it.
Imagine knowing the insufferable entitled arsehole who wrote that.
Fucking idiot.
0. Inheritance is only a thing that happens when somebody dies and they leave you cash or assets in their will. If somebody is alive and gives you cash or assets for free it is a gift, not an inheritance. There is no such thing as early inheritance.
1. Inheritance is a privilege. Many people / most people do not inherit anything or inherit a minimal amount of money, especially if you’ve multiple siblings.
2. If you are gifted 300,000k aged 18-35, rather than aged 45-65 when your parent typically dies (if you’re lucky), then you are privileged bbecuase you are given a head start early in liife.
Get to fuck