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You may be in the fortunate position of receiving a generous gift from a family member this year. Or perhaps you have lost a loved one and inherited some assets from them.
 
Whether it’s a gift or an inheritance, you need to be aware of Capital Acquisitions Tax (CAT) and the rules surrounding it.
 
 

What Is Capital Acquisitions Tax?

 
CAT is commonly referred to as Gift Tax or Inheritance Tax.  A gift is a benefit received from someone who is alive, whereas an inheritance is a benefit taken from someone who has passed away.
 
Examples of Gifts or Inheritances:
 
  • Cash
  • Jewellery or a car
  • House or land
  • Stocks and shares
  • The free use of a house for life
  • An interest-free loan
 
 

How Is CAT Applied?

 
The benefit (gift or inheritance) is taxed if its value exceeds a certain threshold. Different tax-free thresholds apply depending on the relationship between the disponer (the person giving the benefit) and the beneficiary (the person receiving the benefit). There are also exemptions and reliefs depending on the type of gift or inheritance.
 
For example:
 
  • If you receive a gift or inheritance from your spouse or civil partner, you are exempt from CAT.
  • You do not pay CAT on a gift valued at €3,000 or less from any one person in any one year. This exemption does not apply to inheritances.
 
CAT applies to all property located in Ireland. It also applies to property outside Ireland if either the disponer or beneficiary is tax resident in Ireland.

 

Updated CAT Thresholds for 2025

 

Group

Relationship

2025 Threshold

Group A

Child (including stepchild, adopted child, and certain foster children)

€400,000

Group B

Parent, grandparent, grandchild, great-grandchild, brother, sister, nephew, niece €400,000

Group C

Any relationship not included in Group A or B €20,000

 

Exceptions

 
If a grandchild is under 18 and receives a gift or inheritance from a grandparent, Group A may apply if the grandchild’s parent is deceased.
 
 

How Is CAT Calculated?

 
CAT is charged at 33% on gifts or inheritances above the threshold.
 
For example, if you receive gifts from your parents worth €750,000, you only pay tax on the amount above the Group A threshold (€400,000).
 
So, €350,000 is taxed at 33%.
 
 

CAT Filing Requirements

 
You must make a tax return if the total value of gifts and inheritances you have received in one of the groups (A, B, or C) since 5 December 1991 exceeds 80% of the tax-free threshold for that group.
 
 
For example:
 
  • If you receive a €15,000 gift from a sister and a €12,000 inheritance from a grandparent, both fall under Group B.
  • The total amount received is €27,000, and the Group B threshold is €40,000.
  • Since 80% of the threshold is €32,000, you do not owe tax but must file a tax return.
 
 

CAT Payment Deadlines

 
All gifts and inheritances with a valuation date in the 12-month period ending on 31 August must be paid and filed by 31 October.
 
For example:
 
  • If the valuation date is between 1 January and 31 August 2025, you must file and pay by 31 October 2025.
  • If the valuation date is between 1 September and 31 December 2025, you must file and pay by 31 October 2026.
 
 

How to File a CAT Return

 
CAT returns must be filed electronically using Revenue’s Online Service (ROS). In limited circumstances, a paper return can be submitted.
 
 

We Can Help

 
Filing a CAT return can be a complex and time-consuming process, especially when you're navigating exemptions, thresholds, and deadlines. Fortunately, you don't have to manage it alone. A qualified accountant can handle the return on your behalf, ensuring everything is filed accurately and on time. At TaxAssist Accountants, we offer expert support to guide you through every step of your CAT obligations, making the process as smooth and stress-free as possible. Contact us today.

 

Need help with Capital Acquisitions Tax (CAT)?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

059 912 1005

Or contact us

 

Updated 16 Jul 2025 | Published 12 Jul 2018

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Gearoid Condon, FCA

Gearoid is a highly experienced Chartered Accountant with 25 years of expertise in business consultancy, specialising in supporting SME business owners. Gearoid has worked with start-ups and with established businesses to improve the way they run, with particular focus on growth, efficiency, and structuring operations. Through his experience Gearoid has a strong understanding of the tax system and business regulations in Ireland.

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