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Small gift exemption planner
Two parents who each give a child €3,000 a year for 10 years move €60,000 outside the child’s €420,000 threshold: if the child later inherits €500,000, the tax is €26,400 instead of €46,200, €19,800 less. The first €3,000 a year from each giver is exempt and never counts towards the lifetime threshold; anything above it does.
Taxable value of earlier gifts and inheritances in the same group, after any exemptions.
Tax saved by giving yearly
Gifts of up to €3,000 a year from each giver never count towards the threshold.
This shows what the published rules give for the figures you enter, at today’s thresholds. It is general information, not advice, and it cannot see your records. Revenue decides the tax due.
How the planner works it out
- Each year, the first €3,000 from each giver is exempt. Anything above that is a taxable gift.
- Taxable gifts and inheritances in the same group add up over your lifetime (since 5 December 1991). Tax at 33% is due only on the part above the threshold for that group.
- The threshold used is the one in force on the date of each gift or inheritance: from 7 October 2026, €420,000 (A), €44,000 (B) and €22,000 (C). The planner applies those figures to future years too.
Revenue’s examples, reproduced
- Claire receives a €43,000 gift from her mother on 7 October 2026: €40,000 after the small gift exemption. She has €385,000 of earlier Group A benefits, so €35,000 of threshold is left and she pays tax on €5,000: €1,650.
- Annie inherits €34,000 from her sister in 2023 (Group B threshold €32,500): tax on €1,500, €495. A €20,000 inheritance from her grandfather on 1 March 2025 (threshold €40,000) is then taxed on €14,000: €4,620.
What people get wrong
- Thinking €3,000 is a yearly total. It is per giver: a child can receive €3,000 from each parent, grandparent or anyone else each year.
- Counting it against the threshold. Exempt small gifts are left out of all future aggregation.
- Using it for an inheritance. It applies to gifts only.
- Giving the family home as a gift. Since 25 December 2016 the dwelling house exemption for gifts applies only to a dependent relative (aged 65 or over, or permanently incapacitated).
Frequently asked questions
What is the small gift exemption in Ireland?
The first €3,000 of gifts you receive from each person in a calendar year is free of Capital Acquisitions Tax. It is per giver, so two parents can each give a child €3,000 a year, €6,000 in all, and it does not count towards the child’s lifetime threshold.
Does the small gift exemption apply to inheritances?
No. It applies only to gifts made during the giver’s lifetime. If the giver dies within two years of a gift, the gift is treated as an inheritance, but Revenue says the small gift exemption still applies to it.
How much can parents give a child tax-free in Ireland?
Up to the Group A threshold of €420,000 in a lifetime (from 7 October 2026), plus €3,000 a year from each parent that never counts towards it. Ten years of €3,000 from two parents moves €60,000 outside the threshold, which saves €19,800 when the child later inherits more than the threshold.
Do I need to file a return for a gift?
Not for a gift within the €3,000 exemption. You file a CAT return (IT38) when your taxable gifts and inheritances in a group since 5 December 1991 come to more than 80% of the threshold, by 31 October after the valuation date’s year to 31 August.
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Cite or link to this calculator
DecisionsCalc (2026). Small Gift Exemption Planner Ireland: €3,000 a Year Against the CAT Thresholds. https://decisionscalc.com/tools/ireland-small-gift-exemption-planner/
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