No Capital Acquisitions Tax (CAT) is payable on the transfer of assets between spouses or civil partners. So, if a husband dies, all of his assets can transfer to his wife without any inheritance taxes being payable. Likewise, if a wife gifts an asset to her husband during their lifetime, no gift taxes are payable.

In Ireland, it is the person receiving the gift or inheritance that is responsible for the payment of any taxes due. You must make your tax declaration and payment online using the Revenue’s Online Service (ROS). Information on how to use this facility can be found here on the Revenue’s website.

CAT becomes payable on any amounts that you have received either as an inheritance or a gift that exceed the threshold relevant to your relationship to the disponer. The thresholds are largely based on 3 main groups.

The following are the details of the 3 main groups.

Group Thresholds

Group 1

Threshold – €335,000 (As of Budget 2020)

Where the person receiving the property is

• a child of the disponer or,
• a child of the civil partner of the disponer, or,
• a minor child of a deceased child of the disponer or,
• a minor child of a deceased child of the civil partner of the disponer, or,
• a minor child of the civil partner of a deceased child of the disponer, or,
• a minor child of the civil partner of a deceased child of the civil partner of the disponer.

Group 2

Threshold – €32,500

Where the person receiving the property is

• a lineal ancestor of the disponer,
• a descendant of the disponer,
• a brother/sister of the disponer, or,
• a child of a brother/sister of the disponer, or,
• a child of a civil partner of a brother or sister of the disponer.

Group 3

Threshold – €16,250

All other cases

The threshold amounts are those applying with effect from midnight on 12th October 2016.

Source CAT Consolidation Act 2003 (as updated by subsequent Finance Acts).

There are some other reliefs and exemptions available, which are best discussed with your accountant, solicitor or estate planner.

If your estate is largely asset based (property etc.) with limited cash, and you are unsure how your beneficiaries would be able to pay any CAT liabilities upon your death, one very useful way to prepare for this is to take out a Section 72 insurance policy. Options are available to help you with this – please contact Brian Whelan on 01 668 6136 or complete our contact form here.