News & Events

Capital Acquisitions Tax

Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances.  It is paid primarily by the person who receives the gift or inheritance (the beneficiary) and the relationship between that person and the person who provided the gift or inheritance (the disponer) determines the maximum tax-free threshold the beneficiary can avail of.  There are three Group Thresholds which set out the amount below which no tax is payable.  These Group Thresholds change from year to year. The indexed Group Thresholds for 2007, 2008 and 2009 are set out in the table below.

All gifts and inheritances taken by a beneficiary on or after 5 December 1991 coming within the same Group Threshold are aggregated to determine the amount of tax payable on the current gift or inheritance. After that Group Threshold has been reached, CAT is payable at a rate of 22% on the excess of all gifts and inheritances taken since 20 November 2008 and at a rate of 20% on the excess of all gifts and inheritances taken before that date.

* Where a parent inherits an absolute interest on the death of a child, they fall within Group A.  Where the parent receives a gift from a child or where they inherit a limited interest, they fall within Group B.