Gift Tax Ireland: How Much Can Parents Give?
Parents can give substantial amounts to their children before Capital Acquisitions Tax kicks in. The key numbers: €3,000 per year tax-free (the Small Gift Exemption), plus a lifetime threshold of approximately €400,000 (Group A) before 33% CAT applies.
The Two Gift Tax Rules
1. Small Gift Exemption: €3,000/Year
Each parent can give each child up to €3,000 per year completely tax-free. This doesn’t count against the lifetime threshold. Two parents giving to one child = €6,000/year. Over 10 years, that’s €60,000 transferred tax-free.
2. Group A Lifetime Threshold: ~€400,000
All gifts and inheritances from parents to a child are aggregated over the child’s lifetime. Once the cumulative total exceeds the Group A threshold (approximately €400,000 as of 2025/2026 — check Revenue.ie for the exact current figure), CAT at 33% applies on the excess.
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Group Thresholds
| Group | Relationship | Threshold |
|---|---|---|
| A | Child from parent | ~€400,000 |
| B | Sibling, niece/nephew, grandchild, etc. | ~€40,000 |
| C | All other relationships | ~€20,000 |
Property gifts count at market value. If a parent gives a child a property worth €350,000, this uses €350,000 of the Group A threshold (less any previous gifts). Get a professional valuation — and a BER assessment from Homerating.ie which helps establish value context.
Calculate your CAT liability: Inheritance Tax Calculator