If you have a parent or relative whom you believe will be gifting you a cash sum in the future, it is worth avoiding gift tax now, by availing of the small gift exemption.

You are allowed receive €3,000 per annum tax free in this matter and no tax returns are necessary either.

If you do not use this means of gifting cash, the person receiving the gift could end up losing 33% of it, through Gift or Inheritance Tax.

It is to early to begin tax planning and this is one small step to minimize potential tax bills in the future.