Capital Acquisitions Tax Consolidation Act 2003 section 69

Exemption of small gifts

Section 69 provides for the small gift exemption, which disregards the first €3,000 of the total taxable value of all taxable gifts taken by a donee from any one disponer in a calendar year.

• The first €3,000 of the total taxable value of all taxable gifts received by a donee from the same disponer in any calendar year (1 January to 31 December) is completely exempt from capital acquisitions tax.
• The exempted amount is not taken into account when computing tax, meaning it does not aggregate with later gifts or inheritances for the purpose of calculating tax or eroding the donee's group thresholds.
• The exemption applies on a per-disponer basis, so a donee can receive up to €3,000 from each of several different disponers in the same year, with each gift separately qualifying for the exemption.
• Where a gift becomes an inheritance because the disponer dies within two years of the date of the disposition, the same small gift exemption applies to that inheritance as if it were still a gift.