Capital Acquisitions Tax Thresholds
Wills, Probate and Estate Planning
The new Group thresholds for Capital Acquisitions Tax (CAT) on inheritances and gifts taken after midnight on the 12th of October 2016 are set out below. The new tax-free thresholds have increased in each Group from 2015 and consequently represent an increase in the amount which may be inherited or passed on by way of gift without becoming subject to taxation. The current CAT rate is 33%.
The current Group thresholds are as follows:
| Relationship to Disponer | Rates effective | Previous rate |
|---|---|---|
| from | 14 October 2015 to | |
| 12 October 2016 | 11 October 2016 | |
| Group A (Son/Daughter) Includes adopted and step child |
€310,000 | €280,000 |
| Group B (Parent*/Brother/Sister/ Niece/Nephew/Grandchild) |
€32,500 | €30,150 |
| Group C (Relationship other than Group A or B) |
€16,250 | €15,075 |
*In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold
Gifts and inheritances between spouses and civil partners are exempt from CAT.
Furthermore, donors may avail of the small gift tax exemption which applies to the first €3,000 of all gifts passed to a donee in any calendar year. There is no relationship requirement to avail of this exemption.
This article is a general review of the law on the subject and is not intended to be a complete statement of the law. Specific legal advice must be sought on a case by case basis. For further information on Wills, Probate and Estate Planning, please contact Clodagh O’Hagan or Helen Sweeney.
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