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My clients wish to give their daughter an interest free loan of €150000 to purchase a house. The loan is to be repaid by their daughter over a 25 year term ie €6000 per annum.
On the basis that the highest deposit interest rate that my clients could obtain at present is 0.75%, am I correct in computing that the annual gift on the “interest free” would be €1125?
They would also like to gift her €2250 each per annum, which keeps the annual gift from each parent below the €3000 annual exemption. Some of the loan repayments which the daughter makes to her parents might come from these gift amounts.
Would this arrangement be acceptable to Revenue?
Thank you
Tony Fitzgerald

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Posted by (Questions: 80, Answers: 6)
Asked on 10 April 2017 5:06 pm
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