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Exemption of certain inheritances taken by parents

An inheritance taken by a parent from a child is exempt from Capital Acquisitions Tax (CAT) if:

  • that child took a non-exempt gift or inheritance from either or both parents within five years before his or her death.

The inheritance does not have to be of the same property or same value as the earlier gift or inheritance.

  • Example

    On the death of his son, Tony, in 2019, Noel, his father, inherits property worth €5,000,000 from Tony. In 2015, Noel had gifted Tony €20,000 in cash to help him start up a business. The inheritance taken by Noel is fully exempt from CAT.

How to claim the exempion

To claim the Exemption of certain inheritances taken by parents, you need to file a CAT return Form IT38 online. You must file the return through myAccount or Revenue Online Service (ROS).

Published: 18 August 2023 Print this page

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