Patricia is the widow of Martin and receives a gift of €50,000 from Martin’s mother, Alice. Martin and Alice are of nearer relationship than Patricia and Alice. As the surviving spouse of Martin, Patricia is treated as having the same relationship to Alice as Martin for CAT purposes.The Group A threshold will therefore apply.
Patricia had already received an aggregable benefit of €500,000 from her father in 2010. As Patricia has already used up her Group A threshold, she is taxable in full on the gift of €50,000 received from Martin’s mother, Alice. Patricia cannot elect to be treated as a stranger in blood and take the Group C threshold.