Gift and Inheritance Tax (Capital Acquisitions Tax – CAT)

How do you calculate CAT?

The calculations will be made automatically when you use myAccount or Revenue Online Service (ROS) to submit your tax return.

The amount of CAT you pay on a gift or an inheritance depends on:

  • its value
  • your relationship to the person who gave it to you
  • and
  • whether you have received other gifts or inheritances within the same group threshold.

You do not have to pay tax on a gift or an inheritance if:

The threshold you use depends on your relationship to the person who gave you the gift or inheritance.

To calculate how much CAT you have to pay, you need to know your correct group threshold and rate of tax. These are determined by the date of the gift or the date of the inheritance. You will also need to know the value of the benefit you received on the valuation date.

You pay tax only on the value of a gift or an inheritance above the tax-free group threshold amount. You may be able to reduce this taxable amount through relevant reliefs, exemptions and credits.

To calculate CAT, you must add to your current benefit any previous gifts or inheritances received under the same group threshold since 5 December 1991.

Gift splitting

If a gift is passed on to someone in a different group within three years of when it was received it is called gift splitting. Gift splitting affects the threshold used.

CAT paid by the disponer

The disponer may pay the tax due on your gift or inheritance. In this case, your gift or inheritance amount increases by the amount of tax the disponer paid.

Next: How and when do you pay and file?