Indexed Thresholds for Capital Acquisitions TaxThe date of the benefit (e.g. date of death or date of gift) indicates the relevant period for the correct threshold amount. Further information on the date of the benefit is available at: Date of gift/inheritance – Threshold & Rate of Tax Applicable For the purpose of Gift and Inheritance Tax, the relationship between the person who provided the gift or inheritance (i.e. the disponer) and the person who received the gift or inheritance (i.e. the beneficiary), determines the maximum tax-free threshold – known as the “group threshold”. Historically group thresholds were indexed by reference to the Consumer Price Index. The indexation of the tax-free group thresholds is abolished for gifts and inheritances taken on or after 7 December 2011.
* In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold.
* In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold. **Indexation applies with effect from 1 January 1990 to 6 December 2011. Capital Acquisitions Tax comprises Gift Tax, Inheritance Tax and Discretionary Trust Tax. Gift tax is charged on taxable gifts taken (other than on a death) on or after 28 February, 1974 and Inheritance Tax is charged on taxable inheritances taken (on a death) on or after 1 April, 1975. A once-off Inheritance Tax applies to property subject to a discretionary trust on 25 January, 1984, or becoming subject to a discretionary trust on or after that date. Rates of Tax and Thresholds applicableThe standard rate of tax is 33% in respect of gifts and inheritances taken on or after 6th December 2012. Present and previous rates of tax and Threshold Amounts: Thresholds, Rates and Aggregation Rules Reliefs and Exemptions from Capital Acquisitions TaxThere are a number of reliefs available in relation to Capital Acquisitions Tax, including Business Relief, Agricultural Relief, and Favourite Nephew Relief. Exemptions may apply to certain classes of property and to certain classes of individuals. Further information about reliefs and exemptions can be found in the links at the left of this page. Further InformationYou can get more information about Capital Acquisitions Tax in the various links on this page, including information about filing a return, completing the Inland Revenue Affidavit, Legislation changes, and general CAT issues such as Double Taxation and Capital Gains Tax credits etc. You can also download and/or order any Capital Acquisitions Tax forms and leaflets that you require. |