Capital Acquisitions Tax (CAT) comprises an Inheritance tax charged on taxable inheritances taken and a gift tax charged on taxable gifts taken.
Very simply an inheritance is a gratuitous benefit taken on a death and a gift is a gratuitous benefit taken otherwise than on a death.
The tax is currently charged at 33% on the taxable value of the gift or inheritance above the appropriate threshold.
The taxable value is arrived at by calculating the market value of the gift or inheritance and then deducting any specific allowable amounts and any consideration paid by the beneficiary.
Once the taxable value of the gift or inheritance has been determined, the amount of tax payable will depend on whether the appropriate threshold amount has been exceeded.
The relationship between the disponer, the person who provided the gift or inheritance, and the beneficiary, the person who received the gift or inheritance, determines the maximum tax free threshold – known as the “group threshold”.
Since 2008 they are:
|Year||Group Threshold A
son/daughter, minor child of deceased child,(parents –unlimited inheritances only)
|Group Threshold B
E.g. parent, brother, sister,niece, nephew, grandchild
|Group Threshold C
relationships that do not fall in Group A or B
|1/1/09 – 7/4/09||€542,544||€54,254||€27,127|
|8/4/09 – 31/12/09||€434,000||€43,400||€21,700|
|1/1/10 – 7/12/10||€414,799||€41,481||€20,740|
|8/12/10 – 6/12/11||€332,084||€33,208||€16,604|
|7/12/11 – 5/12/12||€250,000||€33,500||€16,750|
|6/12/12 – 13/10/15||€225,000||€30,150||€15,075|
|14/10/15 – 11/10/16||€280,000||€30,150||€15,075|
|On or after 12/10/16||€310,000||€32,500||€16,250|