26 Sept 2022

Can I gift my daughter cash for her house deposit without being taxed?

Our personal finance expert answers your questions ...

Can I gift my daughter cash for her house deposit without being taxed? Liam Croke lets you know

Neither father or daughter will have a tax liability for the exchange

Q: I’m considering giving my daughter and son-in-law €30k towards their new house purchase. They have saved a 10% deposit, so I want them to use this money towards reducing their borrowing thus saving on mortgage repayments. If I gift them this amount, will they or I be liable for tax?

A: Neither of you will incur any tax liability. At the moment your daughter can receive up to €335,000 from you tax-free over her lifetime, with any excess charged at a rate, which is currently 33%.

Even though she has no tax to pay, she has to make a declaration and a return to Revenue advising them she received this gift from you.

If you do give this gift, her lender may ask you to sign a declaration that (a) the monies given were a gift and you aren’t ever expecting any full or part repayment of it i.e. it’s not a loan and (b) because you have indirectly made a financial contribution towards the purchase, you’re waiving your rights to any interest in the property now or in the future.

Helping her out with mortgage repayments is a good idea, as that €30,000 will reduce her monthly repayments by c. €127, and over a 30-year mortgage, she will end up paying back €45,533 less in capital and interest repayments.

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