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Taxman won't be targeting wedding cash from parents

Engaged couples are being assured the taxman won't be chasing them if their parents pay for their wedding.

Revenue has just published new guidance related to gift tax, sparing a matrimonial cash injection from being considered a taxable gift to a child.

It has decided it is an expense borne by the parents rather than a gift, meaning there are no gift tax implications. This extends not only to the cost of catering for guests but also to all of the costs associated with the occasion.

However, a gift such as a car, a house or a paid holiday is still seen as a gift for gift tax purposes. This is the case even though the gift may be associated with a family occasion such as a wedding.

In a clampdown being introduced under the latest Finance Act, Revenue has set its sights on adult children over the age of 25 who might still be benefiting from the financial generosity of well-heeled parents.

From now on, other gifts to adult children will face closer scrutiny.

hnews@herald.ie


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