Are you thinking of giving a financial gift while you're alive? You can give gifts tax free up to a certain amount to anyone. For example, a child can receive a gift up to €400,000 tax-free from their parents. However, if the value of the gift exceeds the relevant threshold, the recipient may need to pay 33% in gift tax on the value above the threshold. But don't worry, with an Aviva Section 73 Savings Plan, you can save specifically to cover this tax liability. Plus, you're not tied to using the proceeds for this purpose. Watch our short video to learn more.
Karen Deenihan, One Minute Pitch. Section 73 Savings Plans.
Your time starts now.
Can you give a gift to someone?
Yes. Anyone can give a financial gift to another person up to a certain amount, tax free. For example, as a parent, I can give my child up to €400,000.
What is gift tax?
If the value of the gift is over a certain amount, then the person that receives the gift needs to pay 33% tax.
Can you give an example?
If a parent gifts a property worth over €600,000 to their child while they're alive, based on the taxable sum of €200,000, the child will owe €66,000 in tax.
Can you help them with this?
Yes. With an Aviva Section 73 policy, you can specifically save money to help your child meet this gift tax liability.
Are there rules relating to this?
Yes. For example, you need to set the policy up as a Section 73 Savings Policy at the start and pay premiums for eight years. Our customer brochure explains these rules.
I have to use the proceeds of my Section 73 Policy to pay my child's gift tax?
No. You can use it for something entirely different.
Karen, your time is up.
For more information, talk to your financial broker or visit Aviva.ie.
Download the Section 73 Customer Guide to learn more.
Learn more about Savings Plan.
Want expert advice on saving to fund for gift tax for the lifetime transfer of gifts? Contact your Financial Broker today.
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A Key Information Document (KID) is an information sheet that helps you understand and compare the key features, risks and costs of the product and funds you are considering investing in.
| The information provided is accurate as of May 2024. You should not base your decision to invest in this product solely on the information on this web page. You should seek professional tax and legal advice to satisfy yourself of your tax position and the legal responsibilities of trustees. The information given is a guideline only. |
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| Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information. |
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| Warning: Past performance is not a reliable guide to future performance. Warning: The value of your investment may go down as well as up. Warning: If you invest in this product, you may lose some or all of the money you invest. Warning: These funds may be affected by changes in currency exchange rates. |
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Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares. Registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Tel (01) 898 7950 www.aviva.ie
Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland.
