How much, in monetary value, is an individual allowed to receive by way of a gift, in any one calendar year, before becoming potentially liable for gift tax?

• A. €3,000
• B. €320,000
• C. €1,000
• D. €32,500

Answer: (A)

The concept at play is the annual gift tax exclusion. In this system, you can receive up to a certain amount from one donor in a calendar year without it entering your gift/Capital Acquisitions Tax liability. Here, that amount is €3,000. So you can take €3,000 from a single donor in the year with no CAT impact. If you receive more than €3,000 from that donor in the same year, the excess can count toward your lifetime threshold and may be taxed at the applicable rate. The key is that the €3,000 limit is per donor per year, and gifts from different donors each get their own €3,000 exemption.