Inheritance Tax/ Gift Tax

Inheritance Tax/ Capital Acquisitions Tax on the Estate?

Capital Acquisitions Tax comprises of Gift Tax, Inheritance Tax and Discretionary Trust Tax. The tax is charged on the taxable values of the gift or inheritance. Please see the table below to calculate your CAT liabilty:

When an inheritance or gift exceeds the relevant tax free threshold, tax at a rate of 33% applies on the balance. There are exceptions and reliefs which can be availed of to minimize CAT liability such as:

• Spouse to Spouse Transfer
• Small gift Tax exemption of €3,000
• Agricultural Relief
• Business Relief
• Single Dwelling House Relief

It is important to seek legal and financial advice on the possible tax implications of any gift or inheritance before making a will or planning how one’s estate is to pass. By doing so, one can effectively plan the most tax efficient manner to leave ones estate and/or the implications of same for the proposed beneficiaries involved.

How is Capital Acquisitions Tax calculated?

Capital Acquisitions Tax is chargeable at 33% of the balance of the gift or inheritance after the relevant threshold has been deducted. The indexed Group thresholds for 2009, 2010,2011, 2012 and 2013 are set out in the table below.