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Tax on gifts and inheritances are both collected through capital acquisitions tax. The rate is currently charged at 33% but the thresholds have increased, meaning that more of the gift is taken tax free.
This change takes some gifts and inheritances out of the tax net and reduces the liability on those that exceed the thresholds.
The closer the relationship, the higher the tax free threshold. Spouses and civil partners are not subject to CAT. Cohabitants are subject to CAT, but not if a court order has been made directing the transfer of property.
| Group A | Group B | Group C | |
|---|---|---|---|
| Relationship | Child | Parent / Brother / Sister / Niece / Nephew / Grandchild | Other |
| 14/10/2015 - 11/10/2016 | €280,000 | €30,150 | €15,075 |
| From 12/10/2016 | €310,000 | €32,500 | €16,250 |
If considering a gift or transfer or planning a will, it can be important to take specific advice on taxation. Other tax exemptions or benefits might be available or, for example, it might be possible to qualify for a different group threshold in certain circumstances.
For a full overview of Budget 2017 see the Department of Finance guide. For more information on capital acquisitions tax see the Revenue Commissioners guide.
See our blog posts on succession planning here or read more about our estate planning and probate services.
