Inheritance tax and inheritance law in Ireland
Taxation Researcher | July 18, 2020
CAPITAL ACQUISITIONS TAX (CAT)
A tax called the capital acquisitions tax is levied on inheritances in Ireland. The beneficiary is liable to pay the tax. Inheritances between spouses are tax-exempt.
Capital acquisitions tax is imposed at a flat rate of 33%. The tax is levied on the market value of inheritance. Any liabilities or debts connected to the inheritance are deductible to arrive at the taxable value.
A non-taxable threshold amount is provided for beneficiaries, with the applicable threshold amount varying depending on the relationship between the deceased and the beneficiary.
CAPITAL ACQUISITION TAX-FREE: THRESHOLD AMOUNTS
|BENEFICIARY||THRESHOLD AMOUNT, €|
|Parent, brother, sister, niece, nephew, grandchild||€30,150|
|Source: Global Property Guide|
In the case of real estate property, the tax may be paid by installments over a period of 5 years; however, interest charges will be applied.