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
A €414,799 €332,084 €332,084
B €41,481 €33,208 €33,208
C €20,740 €16,604 €16,604

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 or telephone 0404-67412.

30 March 2011

    Gillian and all at Augustus Cullen Law, A million thanks for a great job done. Justice for our son at last!!

    Catherine, Liam & William

    Dear Michael, A great result was achieved because of your efforts and we were truly blessed to have you on our side.

    Kathleen, Medical Negligence Client

    Dear Joice…you are and have been very professional, sympathetic and dignified in all of your dealings with us and I put that down to one simple fact. You listened.

    James, Medical Negligence Client

    Geraldine, Thank you most sincerely for all your hard work and commitment to these children.

    Freda McKittrick, Head of Barnardos Beacon Guardian Ad Litem service

    Neil is an absolute gentleman to deal with – kind, tactful and very efficient. We could not praise him highly enough. He brought us through a horrible time.

    Sean, Medical Negligence Client

    Many thanks again for a job well done. We really appreciate all your hard work and practical advice.

    Corporate client in a commercial litigation matter

    Dear Jamie, You and your team in ACL were so professional, diligent and prompt. I have recommended you and the firm, and will continue to do so

    Lorraine McCarthy

    Gus Cullen and the firm’s approach to addressing the key issues was professional, yet personal, efficient yet attentive.


    The process is a difficult one and when you deal with people who are so professional and yet genuine/real people, it makes it so much easier... so thanks a million.


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