For 2021, the standard gift tax allowances will be increased by €1,000 on a one-off basis. This is provided for in an amendment to the Tax Plan ended up in 2021.
Standard exemption
By “standard exemption”, we mean the exemption for gifts to children and the exemption for gifts to other beneficiaries.
The child allowance for 2020 is €5,515. This will be in 2021 € 6.604. This one-off increase does not apply to the increased tax-free allowances for gifts to children aged between 18 and 39 inclusive.
The exemption for other purchasers amounts to €2,208 in 2020. In 2021, this will be: € 3.244. This exemption applies, amongst other things, to gifts made to grandchildren.
As mentioned, the increase is a one-off. From 2022, the previous amounts will apply again, although they will, of course, be adjusted in line with inflation.