If you receive a gift, you may have to pay gift tax on it. If you receive an inheritance following a death, it may be liable to inheritance tax. Both these taxes are types of Capital Acquisitions Tax.
The benefit (the gift or inheritance) is taxed if its value is over a certain limit or 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 a number of exemptions and reliefs that depend on the type of the gift or inheritance.
If you receive a gift or inheritance from your spouse or civil partner, you are exempt from Capital Acquisitions Tax.
The tax applies to all property that is located in Ireland. It also applies where the property is not located in Ireland but either the person giving the benefit or the person receiving it are resident or ordinarily resident in Ireland for tax purposes.
Budget 2020: The Group A tax-free threshold, which applies primarily to gifts and inheritances from parents to their children, will increase from €320,000 to €335,000. This increase applies to gifts or inheritances received on or after the 9 October 2019. There is no change to Group B or Group C tax-free thresholds.
|Portion of taxable value of benefits||% (From 08/04/09)||% (From 07/12/11)||% (From 06/12/12)|
|The threshold amount||Nil||Nil||Nil|
Group A applies where the beneficiary, the person receiving the benefit, is a child of the person giving it. This includes a stepchild or an adopted child.
It can also include a foster child if the foster child resided with and was under the care of the disponer and they provided the care, at their expense, for a period or periods totalling at least 5 years before the foster child reached the age of 18. This minimum period does not apply in the case of an inheritance taken on the date of death of the disponer. In this case the Group A threshold will apply provided that the foster child had been placed in the care of the disponer prior to that date.
Group A also applies to parents who take an inheritance from their child but only where the parent takes full and complete ownership of the inheritance. If a parent receives an inheritance where they do not have full and complete ownership of the benefit, or if a parent receives a gift, then Group B applies.
Group B applies where the beneficiary is the:
Group C applies to any relationship not included in Group A or Group B.
|Group||Gift or inheritance in|
|07 December 2011 - 05 December 2012||06 December 2012 - 13 October 2015||14 October 2015 - 11 October 2016||12 October 2016 - 09 October 2018||10 October 2018 - 08 October 2019||On or after 9 October 2019|
Additionally, the person receiving the gift or inheritance, or the person leasing the property must either have an agricultural qualification (as listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999) or farm the agricultural property for at least 50% of his or her normal working hours.