If you receive a gift or inheritence you could be liable to Capital Acquistions Tax or sometimes referred to as “gift tax“. You are obliged to inform the Revenue Commissioners of your gift/inheritence and failure to do so could give rise to penalties. There are various reliefs and exemptions available and our expert advice should be sought before receiving or inheriting any asset.

The latest tax-free thresholds apply to gifts and inheritances taken on or after 5 December 2012.

The new tax-free thresholds (after indexation) are as follows:

Group A €225,000

Applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. In certain circumstances parents also fall within this threshold where they take an inheritance from a child.

Group B €30,150

Applies where the beneficiary is a brother, sister, niece, nephew or lineal ancestor or lineal descendant of the disponer.

Group C €15,075

Applies in all other cases

CAT Filing Dates

Where the valuation date of a gift or inheritance arises between 1 September 2012 and 31 August 2013, the pay and file deadline is 30 September 2013.

If the valuation date is between 1 September 2013 and 31 August 2013 you must complete the tax return and pay the tax on or before 30 September 2014.

In the case of an Inheritance, the Valuation Date is normally the earliest of the following dates:

  • the date the subject matter of the inheritance can be retained for the benefit of the beneficiary;
  • the date it is actually retained for the benefit of the beneficiary;
  • the date it is transferred or paid over to the beneficiary.

Valuation Date will normally be the date of death in the following circumstances:

  • gift made in contemplation of death (Donatio Mortis Causa);
  • where a power of revocation has not been exercised;
  • where property passes by survivorship or under a trust.