Inheritance & Gift Tax
Capital Acquisitions Tax (CAT) at 33% applies to inheritances and gifts.
However, the current lifetime tax free thresholds are:
Group A (Parents) €335,000
Group B (Relatives) € 32,500
Group C (Other) € 16,250
There are various tax reliefs available to reduce a CAT liability as follows:
(1) Dwelling House Exemption
Inheritances and certain gifts of a dwelling house may be exempt from CAT where certain conditions are satisfied.
(2) Agricultural Relief
This reduces the taxable value of a gift/inheritance of agricultural property by 90% relief. A number of conditions must be satisfied to qualify for the relief.
(3) Business Relief
This also reduces the taxable value of business property by 90% where conditions are satisfied. Farm businesses may qualify for Business Relief even if Agricultural Relief does not apply.
Our Advice
– Making a Will is important
– Potential tax liabilities can be substantial, so tax advice is necessary prior to finalising a Will
– Certain assets transfers could be liable to both Capital Gains Tax (CGT) as well as CAT
– Business Relief may apply where Agricultural Relief does not.
– An individual can receive a tax free gift of €3,000 per annum
– Be careful! – A claw back of reliefs can occur where conditions are not satisfied.
John Canty & Co Chartered Accountants and Registered Auditors
3 Denny Street, Tralee, Co. Kerry.
T: 066 7127802 M: 087 9431998
E:info@jcantyaccounts.ie | www.jcantyaccountants.ie
