Inheritance Tax: Everything You Need to Know

Inheritance tax, or Capital Acquisitions Tax (CAT), is a tax on gifts and inheritances in Ireland. It is paid by the person who receives the gift or inheritance, not the person who gives it.
The standard rate of CAT is 33%, but there are different rates for different types of gifts and inheritances. For example, gifts and inheritances from parents to children are taxed at a rate of 20%.
There are also a number of exemptions from CAT, including:
* Gifts and inheritances from your spouse or civil partner
* Gifts and inheritances up to the value of €3,000 per year
* Gifts and inheritances for the purpose of education or training
If you are planning to give or receive a gift or inheritance, it is important to be aware of the CAT implications. You can find more information on the Revenue website.
In addition to the standard exemptions, there are a number of reliefs that can reduce the amount of CAT you have to pay. These reliefs include:
* The Group A relief: This relief applies to gifts and inheritances from parents to children. It allows you to receive up to €335,000 tax-free.
* The Group B relief: This relief applies to gifts and inheritances from other relatives, such as siblings and grandparents. It allows you to receive up to €167,250 tax-free.
* The Section 84 relief: This relief applies to gifts and inheritances for the purpose of education or training. It allows you to receive up to €40,000 tax-free.
If you are planning to give or receive a gift or inheritance, it is important to be aware of the CAT implications. You can find more information on the Revenue website or by speaking to a tax advisor.
CAT is a complex tax, and it is important to get professional advice if you are unsure about how it applies to your situation.