It is now clear that the gift tax exemption applicable since 1 October 2013 for gifts relating to the purchase, renovation or maintenance of the owner-occupied home or relating to the donee's owner-occupied home debt (of up to €100,000) will be applicable with effect from 1 January 2015 expires (or would politicians still surprise us during the parliamentary debate on the tax plans?).
Anyone who still wants to make use of the exemption should therefore act quickly, paying close attention to the proverbial snag in the conditions of that exemption. The donation must be subject to the suspensive condition that the donated amount has actually been spent. Under civil law, a donation only takes place the moment the condition precedent attached to the donation is fulfilled. If the amount of the donation is not finally spent until after 31 December 2014, the donation takes place at a time when the exemption no longer applies and the exemption cannot be applied.
If it concerns the purchase of an owner-occupied home, that purchase must be finally completed before 1 January 2015. The same applies to a renovation or maintenance work, but depending on what has been agreed, that work can also be partially completed. The repayment of the owner-occupied home debt must actually have taken place in 2014 (often, this requires the cooperation of the lender, and if it is a financial institution, this usually takes some time).
We do not rule out the possibility that, towards the end of the current year, Finance will come up with a small extension of the scheme for situations in which, unexpectedly, the use of the donation could just not take place in 2014 after all. However, in case this concession is not forthcoming, it is important to take action very soon.