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 €335,000 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.
Transcript for video Aviva Section 73 Savings Plan
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 €335,000.
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 €265,000, the child will owe €87,450 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.
- Specific Revenue guidelines apply, for example, you need to save for a minimum period of 8 years and the policy needs to be set up as a Section 73 Savings Plan at the outset. Read our Section 73 Customer Guide for more information.
- Invest from as little as €100 per month.
- Using our range of investment options, you have control over how you invest in the Section 73 Savings Plan. Whether you're new to investing or more experienced, there's an option for you. These investment options include our popular Multi-Asset ESG Funds.
- You can change your investment choice throughout the policy.
- This product may be suitable for parents and relatives such as grandparents and godparents who would like to help pay their loved one’s gift tax liability from the lifetime transfer of an asset.
Download the Section 73 Customer Guide to learn more.
Expert Advice
Want expert advice on saving to fund for gift tax for the lifetime transfer of gifts? Contact your Financial Broker today.
Tools & Calculators
| 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. |
|---|
| Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information. |
|---|
| 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. |
|---|
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. Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland. Tel (01) 898 7950.