Capital Acquisitions Tax (CAT) thresholds, rates and aggregation rules

Overview

To calculate CAT you need to know which threshold, tax rate and aggregation rules apply to a gift or inheritance. You also need to know two important dates:

  • the date of the gift or inheritance, which determines the relevant threshold and rate of tax
  • the valuation date, which determines the relevant pay & file period.

This section explains the thresholds, tax rates and aggregation rules that apply to a gift or inheritance.

A beneficiary must make a Self-Assessment Capital Acquisitions Tax (CAT) Return IT38, if the taxable value of the gift or inheritance exceeds 80% of the relevant group threshold. You must include all other taxable gifts or inheritances taken from any source within the same group threshold, on or after 5 December 1991.

However, if you are claiming agricultural relief or business relief on a gift or inheritance, then you must file a CAT return. This applies even if the total taxable value of previous benefits when added to the taxable value of the current benefit qualifying for the relief, does not exceed 80% of the relevant threshold. 

For full legal definitions, see the Glossary.

Next: Important dates for CAT