Capital Acquisitions Tax

By Claire, Friday, 27th September 2013 | 0 comments

Capital Aquisitions Tax, otherwise known as CAT is a tax on gifts and inheritances received by one individual from another individual. The standard rate of tax on a gift or inheritance taken on or after the 6th of December 2012 is 33% of the gift or inheritance.

There is no CAT between spouses.

We each have a certain threshold amount which we can take free from CAT. The amount of tax payble is primarly based on the following:

  • The value of the benefit
  • The relationship between the beneficiary and the donor
  • Any prior benefits which the beneficiary has received from the donor or from any other doner in relation to whom the beneficiary bears a similar relationship

The threshold groups and amounts are as follows:

GROUP A: Son/Daughter €225,000

GROUP B: Parent*/Brother/Sister/Neice/Nephew/Grandchild  €30,150

GROUP C: Relationship other than Group A or Group B €15,075

*In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold

Knowledge of these thresholds can be of great use when dividing up family property in one's lifetime, and can also be useful when planning your will. It is important to remember however, that the tax rates, and tax free threshold amounts are subject to change. 

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