Amendment to Capital Acquisitions Tax Thresholds

As predicted, in the 2015 Budget, the government has increased the threshold before which a child will pay tax on a gift or an inheritance from a parent. The threshold has been increased for €225,000.00 to €280,000.00. The change will affect all gifts and inheritances taken by a child from a parent from 14th October 2015.

The rate of the tax payable on all gifts and inheritances above €280,000.00, a penal 33%, remains the same.

An updated summary of all of the class thresholds is below.

It is the relationship between the beneficiary and the gift/inheritance giver that dictates when a person becomes liable for CAT. At the moment, before a person becomes liable for CAT, they may inherit/receive gifts (or if more than one, then the total when aggregated together) in their lifetime from the following classes, up to the following values:

GroupRelationship to Disponer Group Threshold from 14/10/2015



CRelationship other than Group A or B€15,075

*In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold.

Some reliefs and exemptions are still available. Significantly, in cases which involve the gift/inheritance of a dwellinghouse, a full exemption can apply if certain criteria are met.

For more information contact Julie Mullan

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