Dáil Éireann Debate, Tuesday - 14 July 2026
185. Deputy Sean Fleming asked the Tánaiste and Minister for Finance to outline if tax is payable on wedding gifts received, in terms of cash or non-cash gifts, in respect of income tax, capital gains tax, gift tax or other taxes; and if he will make a statement on the matter. [52737/26]
View answerI am advised by Revenue that the tax treatment of a wedding gift will depend on the particular facts and circumstances of the gift, including the nature of the asset transferred, the relationship between the donor and recipient and the value of the gift.
Income Tax
In general, a wedding gift would not give rise to any income tax consequences. However, where a receipt, whether monetary or non-monetary, is received in connection with the provision of a service, the receipt will be treated as income for the provision of the related service and would be chargeable to tax.
Capital Acquisitions Tax (CAT)
I am advised by Revenue that a wedding gift does not benefit from any specific exemption under the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 and is therefore subject to the ordinary CAT rules applicable to gifts.
There are three Group thresholds which determine the maximum amount below which a charge to CAT does not arise.
• Group A threshold (currently €400,000) applies, inter alia, where the beneficiary is a child (including an adopted child, stepchild and certain foster children) of the disponer.
• Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer.
• Group C threshold (currently €20,000) applies in all other cases.
The value of taxable gifts and inheritances previously received within the relevant group since 5 December 1991 is taken into account in determining whether the applicable threshold has been exceeded. A CAT liability will arise only where the aggregate taxable benefits exceed the relevant tax-free threshold applicable to the beneficiary.
In addition to the thresholds set out above, a person may receive gifts up to the value of €3,000 from any person in any calendar year without having to pay CAT. Accordingly, where a wedding gift exceeds €3,000, the excess will be a taxable gift. Whether CAT arises will depend on the relationship between the person making the gift and the person receiving it and the relevant CAT Group threshold available to the beneficiary.
Capital Gains Tax
Capital Gains Tax (CGT) may arise in respect of chargeable gains accruing on the disposal of an asset; a transfer of an asset by way of gift is considered the disposal of the asset for CGT purposes. Generally, all types of property are considered assets for CGT purposes other than the currency of the State. As such, should the wedding gift comprise a cash gift denominated in Euro, it will not be considered the disposal of an asset for CGT purposes. Should the gift comprise of any other form of property, CGT may be due on the disposal of same by the person making the gift if a chargeable gain arises.
The facts and circumstances of each disposal will determine the amount of CGT, if any, due on foot of a disposal of an asset by way of gift, including the availability of any exemptions or reliefs from CGT which may arise in the context of each specific disposal.
Should a charge to CAT arise on the wedding gift, any CGT paid by the donor may be credited against the CAT liability arising on the recipient. The credit will be withdrawn where the property comprising the gift is disposed of within two years. Further guidance on this credit is published on the Revenue website at: www.revenue.ie/en/gains-gifts-and-inheritance/credits-you-can-claim-against-cat/credit-for-capital-gains-tax-cgt.aspx
