Capital Acquisitions Tax (CAT)
Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances.
You can receive a certain value of gifts and inheritances without paying CAT.
The value of gifts and inheritances you can receive without paying CAT depends on your relationship to the person you receive the gift or inheritance from. Relationships are grouped into three categories all with different thresholds (Please refer to table below)
CAT applies to all property in Ireland. It also applies if the property is not located in Ireland but the person giving or receiving it is resident or ordinarily resident in Ireland for tax purposes.
Tax-free limits
You do not have to pay CAT if the amount you get is below a certain limit. The tax-free amount, or threshold, depends on your relationship to the person who gives you the gift or inheritance. Once the threshold is exceeded tax at 33% will apply to the balance of the gift or inheritance. There are 3 different groups of relationship. The groups are called A, B and C. The limit for each group is for the total amount you got in that category since 5 December 1991.
Capital Acquisitions Tax group thresholds from 2 October 2024
Exemptions
There are exemptions and reliefs which can be availed of to minimize CAT liability as follows:-
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Spouse to spouse and Civil Partner to Civil Partner exemption.
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Surviving spouse relief.
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Small Gift tax exemptions of €3000.00
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Agricultural relief.
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Business relief.
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Dwelling House relief.
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Child to parent Relief and Exemption.
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Favourite Niece / Nephew Relief.
Group | Threshold Limit | Your relationship to the giver |
---|---|---|
A | €400,000 | Child
Grandchild, if your parent has died and you are under 18
Foster Child |
B | €40,000 | Brother or sister
Parent (in certain circumstances Group A may apply)
Grandparent, grandchild or other relative you are directly
descended from or who is directly descended from you
Niece or nephew (Group A may apply to assets of a
business you have worked in for 5 years)
Equivalent relationships if you are a foster child |
C | €20,000 | Any relationship not in Group A or B |