GENERAL

Cat applies in respect of gifts and inheritances received. The beneficiary is liable for the tax.

The current rate is 30%.

There are substantial tax free thresholds which effectively mean the beneficiary is exempt tax on cumulative dispositions received over many years depending on their relationship to the donor.

Group A   applies where the beneficiary is a child of the donor    €332,084

Group B  applies where the beneficiary is a lineal ancestor, lineal descendant, a brother, sister or child of a brother or sister of the disponer    €33,208

Group C applies where beneficiary does not fall into Group A or B    €16,604

EXEMPTIONS & RELIEFS

There are a wide range of very substantial special reliefs and exemptions.. These include:

SPOUSE   transfers are generally completely exempt.

CERTAIN DWELLING HOUSES  where beneficiary has resided in them for 3 out the 4 previous years prior to the relevant disposition.  Other conditions apply.

AGRICULTURAL RELIEF 90% of the value transferred may be exempt where the property transfer qualifies as agricultural property. This relief is very technical and many other conditions apply. There is substantial scope for tax planning in this area.

BUSINESS RELIEF where business property is transferred 90% of the value may be exempt where this relief applies.  Again the relief is very technical and many other conditions apply. There is also very substantial scope for tax planning in this area.

DIVORCED SPOUSES all transfers from one spouse to another are exempt where those spouses have divorced and the transfer is made pursuant to certain court orders.