Michael McGrath (Cork South Central, Fianna Fail)
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86. To ask the Minister for Finance if receipt by a beneficiary of €3,000 annually by way of a gift (in line with the annual exemption) from a donor, has any impact on the amount that beneficiary can receive tax free (in accordance with the relevant threshold) by way of inheritance on the death of the same donor, under gift tax legislation. [29108/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that there is currently an annual exemption of up to €3,000 for gifts taken by any one beneficiary from any one donor in each calendar year (section 69 Capital Acquisitions Tax Consolidation Act (CATCA) 2003). Gifts with a value that are within this limit are not taken into account in computing tax and are not included in any future aggregation of benefits taken. Where a gift exceeds this limit, only the excess over the limit is taken into account for the purposes of calculating gift tax.

In the scenario put forward by the Deputy the beneficiary could receive €3,000 annually from a donor as a gift without any charge to CAT arising and without impacting on his or her relevant CAT threshold for the purposes of calculating CAT due on any other gifts or inheritances from that same donor.