How to gift your child a house deposit . . . tax free

The small-gift exemption scheme may be a no-brainer but do your homework first

Parents need to make sure that their own finances are in tip-top shape before they start gifting funds to a child.

Parents need to make sure that their own finances are in tip-top shape before they start gifting funds to a child.

Funding a down payment for a home is a perennial problem and with deposit rates on the floor, some parents see the small-gift exemption as an ideal mechanism to build up a fund to be used by their children at some point in the future to buy their first home.

But while in many ways the scheme may be a no-brainer – at least for those who have the cash – it’s always wise to do your homework before committing to it.

The Irish Times
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