Tax Guide

The primary taxes a Testator or Donor (gifts made during lifetime) should be aware of when drafting his or her Will are as follows:

1. Capital Acquisitions Tax, which is a tax on gifts and inheritance received by individuals (beneficiaries) from other individuals (donors).

2. Capital Gains Tax, which is a tax on the gains realised by individuals on the disposal of assets.

3. Stamp Duty, which is a tax on documents and is charged on conveyances of property. Stamp Duty rates on residential property range from 1% to 6% and is currently 7.5% on non-residential property.

Reliefs

There are reliefs available to testators and beneficiaries when gifting or bequeathing assets such as the following:

1. Small Gift Exemption: gifts you receive up to the value of €3,000 from any person in a calendar year are exempt from CAT.

2. Agricultural Relief: If applicable, this tax can provide relief of up to 90% on gifts or inheritance of agricultural land.

3. Business Relief: If applicable, this tax can provide relief of up to 90% on gifts or inheritance that apply to “working businesses” only.

4. Dwelling House Relief.

5. Favourite nephew/niece relief.