Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Any changes to the small gift exemption must be considered in the context of competing demands. Increasing the small gift exemption threshold would incur a cost to the Exchequer, which may potentially inhibit the Government’s ability to introduce further cost-of-living supports for households and businesses. The relief, in its current guise, is fair, and providing an increase to the small gift exemption must be balanced against competing demands and as part of the annual budget and finance Bill process.

As the Deputy will be aware, a person may receive a gift up to the value of €3,000 from any person in a calendar year, without having to pay CAT. Significantly, gifts within this limit are not taken into account in computing tax and are not included for aggregation purposes. There is no limit to the number of such gifts a person can get every year, if someone was fortunate enough to be in a position to receive them. There are tax planning opportunities here and I have no doubt that this tax planning is being given effect in many instances. It can be €3,000 each year, indefinitely, and there is no limit to the number of such contributions or amounts to be given by grandparents, other parents and so on. We have to look at it in the round but in general it is a generous exemption.

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