How does Irish CAT (Capital Acquisitions Tax) work — what are the group thresholds?

Capital Acquisitions Tax (CAT) is Ireland's combined inheritance and gift tax, charged at a flat rate of 33% on the taxable value of gifts and inheritances above the applicable group threshold.

For 2024, there are three group thresholds. Group A (€335,000) applies to gifts or inheritances received from a parent by a child, or to a minor child of a deceased child. Group B (€32,500) applies to gifts from grandparents, siblings, aunts, uncles, and nieces or nephews. Group C (€16,250) applies to all other relationships, including cousins and unrelated individuals.

The thresholds are lifetime cumulative limits, not annual limits. All gifts and inheritances received from within the same group since 5 December 1991 count toward the threshold. Once the threshold is exhausted, all subsequent receipts from the same group are taxed at 33%.

Spouses and civil partners are fully exempt from CAT on gifts and inheritances received from each other. The Principal Private Residence (dwelling house) exemption means that a property inherited by someone who lived in it as their main home for three years before the inheritance, and who has no other home, is exempt from CAT.