Irish inheritance tax falls under the tax category Capital Acquisitions Tax (CAT) which covers both inheritances and gifts and is charged at a penal 33%.
Under the current tax regime in Ireland 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:
Group Relationship to Disponer Group Threshold from 6/12/2012
A Son/Daughter €225,000
B Parent*/Brother/Sister/Niece/Nephew/Grandchild €30,150
C Relationship 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.
Many commentators suggest these thresholds may be increased in October’s Budget.
Some reliefs and exemptions are 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
If you are thinking of engaging a lawyer, why not contact us today to see if we can assist? Any of our solicitors will be delighted to speak with you without obligation.