What are the Irish inheritance tax (CAT) thresholds for Group A, B, and C in 2024?
Capital Acquisitions Tax (CAT) is Ireland's tax on gifts and inheritances. It applies at a flat rate of 33% on the value received above the relevant tax-free threshold. The threshold depends on the relationship between the recipient (beneficiary) and the person who died or gifted (disponer).
2024 CAT Group Thresholds:
| Group | Relationship to Disponer | 2024 Tax-Free Threshold |
|---|---|---|
| Group A | Child (including adopted, step, foster), or parent (where inheritance only) | ā¬335,000 |
| Group B | Sibling, niece, nephew, grandchild, grandparent | ā¬32,500 |
| Group C | All other relationships (unrelated persons, cousins, in-laws, partners) | ā¬16,250 |
How the threshold works:
These thresholds are lifetime cumulative ā they apply to the total of all gifts and inheritances received from that group over your entire life, not just from one person. If you received ā¬300,000 from your parent in 2018, and now inherit another ā¬100,000 from your other parent in 2024, your cumulative Group A receipts are ā¬400,000. Only the first ā¬335,000 is exempt; you owe 33% on the remaining ā¬65,000 = ā¬21,450 CAT.
Exemptions and reliefs:
- Dwelling house exemption: If you inherit the family home and have lived there for at least three years before the inheritance, and do not own another property, the house is fully exempt from CAT.
- Business relief: 90% reduction in CAT value for qualifying business assets.
- Agricultural relief: 90% reduction for qualifying farmland and farm assets if you are an active farmer.
- Spouse exemption: Inheritances and gifts between spouses are fully exempt from CAT.
- Small gift exemption: The first ā¬3,000 received from any individual in a calendar year is exempt from CAT (not counted against the lifetime threshold).
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