Dec 2012 | Budget 2013 and CAT

The CAT rate is to increase from 30% to 33% (matching a similar increase to Capital Gains Tax rate) for gifts or inheritances received on or after 6 December 2012.

Group thresholds are to be reduced by 10% from the same date. Therefore gifts or inheritances from a parent, ignoring aggregation, will now be taxable at 33% to the extent the benefit exceeds €225,000. Benefits from group threshold 2, e.g. brothers, sisters, aunts, uncles will be taxable at 33%, ignoring aggregation, to the extent the benefit exceeds €30,150. The final threshold for all other benefits received (the 'stranger threshold') is reduced to €15,075.

 

Group Threshold

 

Year Group Threshold A
son/daughter, minor child of deceased child, (parents –unlimited inheritances only)
Group Threshold B
E.g. parent, brother, sister, niece, nephew, grandchild
Group Threshold C
relationships that do not fall in Group A or B

On or after 6/12/12

€225,000 €30,150 €15,075

 

 

See more details here.

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Aileen Keogan | Solicitor & Tax Consultant | 21 The Avenue | Louisa Valley | Leixlip | Co. Kildare | Ireland

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