Capital Acquisitions Tax (CAT) is payable on taxable gifts or inheritances. Gift tax and Inheritance tax are distinguished by the fact that an inheritance is taken on the death of a person while a gift is not so taken.
The degree of relationship between the disponee (person giving the gift/inheritance) and the beneficiary (person receiving the gift/inheritance) is one factor which determines the amount one can receive without having to pay CAT. It is known as a “group threshold”.
Recent changes introduced by Budget 2011, which took effect from midnight on 7 December 2010, reduced the current capital acquisitions tax free thresholds which are available in respect of gifts or inheritance. The following table sets out the most recent thresholds:
|Group||Threshold from 1/1/2010 to 7/12/2010||Threshold from 08/12/2010 – 31/12/2010||Threshold from 01/01/2011|
Group A – Where the beneficiary is a Child of the disponee. The term child includes natural child, adopted, step-child and natural child validly adopted by other adoptive parents. In certain limited circumstances a parent taking a gift from a child can qualify for a Group A threshold.
Group B – Where the beneficiary is a Brother, Sister, Child of brother/ sister, Grandparent, Grandchild, Great- grandparent, Great-grandchild.
Group C – Where the beneficiary is anyone else other than Group A or Group B. This includes Uncles, Aunts, Cousins etc. and strangers-in-blood.
If you require advice in relation to Capital Acquisitions Tax please contact us for further information on firstname.lastname@example.org or telephone 0404-67412.
30 March 2011