It looks like the internet browser you are using is out of date. Please update your browser for the best experience.
Close
Home   Gains, gifts and inheritances

Valuation date and the value of benefits

  1. Overview
  2. What is the valuation date?
  3. Taxable value of a gift or inheritance
  4. Limited interest
  5. Factors used for calculating the value of limited interest
  6. Rights of residence
  7. Annuities and other periodic payments
  8. Free use of property and interest free loans

Free use of property and interest free loans

Free use of property

If you have free use of a property, or for less than its market value, this is a benefit and you may have to pay tax on it. If you use the property over a number of years, the benefit is regarded as being received on 31 December each year.

  • Example 1

    Anne gives her cousin Colette the use of her house. The annual rent Anne could receive for the property is €15,000. Colette pays Anne €5,000 per year.

    Colette is deemed to have received a gift of €10,000 on 31 December each year that she has the use of the house. Each gift is taken into account for aggregation purposes.

Interest free loan

If you receive an interest free loan, this is a benefit and you may have to pay tax on it. The value of the benefit is the rate of return the funds would generate if they were invested on deposit. The relevant tax date for this benefit is 31 December each year until the loan is paid off.

If the loan is repaid during the year, the date of repayment is used to calculate the value of the gift for that year.

You may have to file a return for this benefit. For further information, please see Filing obligations for certain interest free loans.

Published: 16 January 2025 Print this pagePrint all pages in 'Valuation date and the value of benefits'

Back to homepage Back to top