Capital Acquisitions Tax

Irish Capital Acquisitions Tax – Thresholds, Rates, Aggregation Rules

Capital Acquisitions Tax (CAT) is a tax payable by a person who benefits from a will or a gift.

The tax is calculated by reference to:
(a) the value of the gift,
(b) the relationship in law between the donor and the donee,
(c) the thresholds applicable at the date of the gift and
(d) whether the donee has received prior gifts from any donor.

Pre Finance Act 2000:
Prior to the Finance Act 2000, Irish CAT was payable on property situated in Ireland. But the charge to Irish CAT extended to include property situate abroad if a deceased died domiciled in Ireland.

Post Finance Act 2000:
From 1 December 1999 the position is changed. Gifts or inheritances of Irish property are liable to tax whether or not the disponer is resident or domiciled in Ireland.

And from 1 December 1999 foreign property is liable to Irish Capital Acquisitions Tax where either the disponer or the beneficiary is resident or ordinarily resident in Ireland at the relevant date i.e. the date of the gift or (in the case of a death) the date of the death.

(as a transitional measure a foreign domiciled person was not to be regarded as resident or ordinarily resident in Ireland for CAT purposes before 1 December 2004).
The following scale sets out the (reduced) main tax free thresholds for gifts or inheritances arising after 6th December 2012.  

PLEASE NOTE CAREFULLY that these thresholds change annually

Once the tax free threshold for a particular beneficiary has been exceeded, tax is payable on the remainder of the benefit at the current rate of 33% (previously 20% then 22% then 25% then 30%)

Gift - Threshold for Capital Acquisitions Tax

Gifts between spouses or civil partners - no limit

Gifts from parent to child, to a foster child, or to a minor child of a deceased child - down to euro €225,000

Gifts between siblings - now euro €33,500

Gifts to nephews & nieces or to grandchildren - now euro €30,150

Gifts to others - now euro €15,075

The above list is not exhaustive. In some situations there are other factors, relevant dates and sources of prior gifts, residence factors, and other situations and exceptions all to be taken into account in determining the applicable allowances and the particular tax liability

The thresholds, rates and aggregation rules in relation to Capital Acquisitions Tax can be found at the following sections of the Irish Revenue website:

THRESHOLDS

RATES

AGGREGATION RULES