Capital Acquisitions Tax (CAT) is the broader term covering gift tax and inheritance tax. Inheritance tax arises on the value of property passing to somebody on the death of another person. Gift tax arises on the value of gifts received from a living person.

With the exception of gifts or inheritances between husbands and wives and for certain charitable or public purposes, all persons can be liable for CAT. Inheritances from a son or daughter taken on or after 12th April 1995 are also exempt provided that the son or daughter had taken a non exempt gift or inheritance from a parent within five years prior to death. The rate of tax on taxable gifts and inheritances is 20%

The amount that can be received tax free will depend on the relationship to the donor. However, this tax free amount is not an annual allowance and any gifts or inheritances are aggregated with all gifts or inheritances received since 5th December 1991. The table below sets out the thresholds for the various categories.

Figures correct at time of publishing. No responsibility is accepted for any errors. Please contact our office for further clarification on these figures.