Section 73: save now to pay the gift tax later

Planning to give a child a house, a site or a share in the business during your lifetime? A Section 73 savings plan builds the money for their gift tax over eight years, and pays it without creating a second tax bill.

4.9 Google reviews 30,000+ clients Eight years of saving, then the gift
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Plan the gift and the tax

Tell us what you plan to give and when. A senior advisor is in touch with the likely gift tax and what to save each month.

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Tax relief, contribution limits and the right plan differ between the three.

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What it is

A savings plan approved by Revenue to pay gift tax

When you give your child a large gift, they pay CAT at 33% on the value above their threshold. If you pay that tax for them from your own money, the payment is a further gift, and it can be taxed again.

A Section 73 plan avoids that. It is a regular savings plan with an Irish life company, set up under section 73 of the Capital Acquisitions Tax Consolidation Act 2003. Money from it used to pay the tax on a gift you make within a year of the payout is exempt from CAT.

  • Set up as Section 73 from the start
  • You pay the premiums, for at least eight years
  • Used for the gift tax, the money is exempt from CAT
  • No obligation to make the gift at the end
The eight-year rule

The rules that keep the relief

Revenue sets the conditions, and missing one can cost the relief. You pay regular premiums for at least eight years, and the plan pays out on a date more than eight years after it began. The gift must then be made within a year of that date.

The plan must be written under Section 73 from the start, so an existing savings policy cannot be converted. If the premiums stop before eight years, the relief is lost.

  • At least eight years of regular premiums
  • In one name, or joint for a married couple or civil partners
  • No year's premium less than half of another year's
  • The gift made within a year of the payout

Gift tax with and without Section 73

A €600,000 house given to a son, after the €420,000 Group A threshold and the €3,000 small gift exemption, with no earlier gifts.

Without Section 73With Section 73
Taxable gift€177,000€177,000
Gift tax at 33%€58,410€58,410
Tax on the parent paying that tax€19,275Nil
Total tax€77,685€58,410

Worked example: a house for a son in eight years

Brendan is 58. He plans to give his son Conor a house now worth €600,000 when he retires in eight years. Conor has had no earlier gifts from his parents.

What the plan showed:

  • Conor's gift tax would be €58,410: 33% of the €177,000 above his €420,000 threshold and the €3,000 small gift exemption.
  • Paid from Brendan's ordinary savings, that €58,410 would itself be a gift, with about €19,275 more tax.
  • Saving €600 a month in a Section 73 plan for eight years puts €57,600 into the plan, before growth, charges and exit tax on any gain.
  • After eight years Brendan makes the gift within a year of the payout, and the plan pays Conor's tax with no further CAT.

Figures are illustrative and use today's thresholds. The value of the plan can fall as well as rise.

Where the money goes

Invested with a regulated Irish life company

A Section 73 plan is a unit-linked savings policy. Your premiums buy units in funds matched to your risk rating, so the value can rise or fall. Aviva and Standard Life both offer Section 73 plans, and Aviva's start from €100 a month.

Gains are taxed like any life company investment. Exit tax comes off the growth when the plan pays out, and every eight years under deemed disposal. Budget 2027 cuts the rate from 38% to 35%.

  • Funds matched to your risk rating
  • Plans from €100 a month with Aviva
  • Exit tax on the gain only
  • Reviewed every year against the gift you plan
What happens next

How it works

1

Tell us about the gift

What you plan to give, to whom and when. Two minutes on the form.

2

We work out the tax

At today's thresholds, in euro, with the small gift exemption applied.

3

We set the monthly amount

What to save each month to meet the bill, with a margin for poor years.

4

We compare providers

Section 73 plans, funds and charges across the main Irish life companies.

5

We set it up as Section 73

From day one, so the relief is there when you need it.

6

We review it every year

Against the value of the gift and any change in the thresholds.

8 yearsminimum saving period
1 yearto make the gift after the payout
33%gift tax above the threshold
€420,000Group A threshold from 7 October 2026
Google reviews

What clients say about their advisor.

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We (Richie and Nickey) received excellent pension advice that was clear, honest, and tailored to my situation. Everything was explained in a way we could easily understand, and we felt confident making decisions about my future. Highly professional service and very reassuring throughout the process.
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They made setting up a company pension on a deadline extremely easy and stress free. You can tell they understand the products inside out. Very approachable, great availability for support with instant and clear answers.
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True Wealth was super efficient in locating my UK pension. They were very professional and responsive in dealing with the relevant pension organization. I would highly recommend True Wealth.
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Thank you for the several calls to advise me. Great client attention! Eimear is fantastic! I had my pension sorted and a few insurances arranged. All the best.
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Excellent service. Always there if I had any questions, would recommend without hesitation. A 5 star service. Thank you everyone.
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Questions

Frequently asked questions

Straight answers with the figures. If yours is not here, a senior advisor answers it in your review.

Who is a Section 73 plan for?

Parents and grandparents who plan to pass on a house, a site, land or business shares in eight years or more, and who have spare income to save towards the tax.

Do I have to make the gift at the end?

No. If you decide not to, the plan stays yours, to use as ordinary savings.

What if I die or become seriously ill before eight years?

The eight-year wait is shortened if you, or your spouse or civil partner, die or become critically ill and the policy pays out. If you die after the payout but before making the gift, the relief for the gift is lost. A plan that pays out on death may qualify under Section 72 instead, if it meets those rules.

Can my spouse and I hold the plan together?

Yes. A plan is held in one person's name, or jointly by a married couple or civil partners.

Can I change the premium?

Within limits. Over the eight years, no year's premium can be less than half of another year's. If premiums stop, they cannot restart, and stopping inside the first eight years loses the relief.

Can I use it for inheritance tax instead?

In some cases. A Section 73 plan that pays out on your death can qualify as Section 72 cover if it meets those rules. For inheritance tax on your death, Section 72 cover is the usual route.

Is there exit tax?

Yes, on the gain, as with any life company savings plan. The provider deducts it, and the rest goes towards the gift tax.

Warnings

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you may lose some or all of the money you invest.

Give the gift, not a second tax bill

Two minutes on the form. A senior advisor is in touch with the tax and the monthly amount that meets it.

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