Inheritance Tax Thresholds in Ireland

The current rate of Capital Acquisition Tax (CAT) in Ireland is 33%. This 33% applies on all Lifetime Passing of Assets (Gifts) and on Death (Inheritances) that are above the beneficiary’s Group Threshold.

For certain families in Ireland, there is a huge (potential) inter-generational value erosion on the passing of assets due to this relatively high rate of Capital Tax (33%)

Budget 2025 changed the Group Thresholds to the following:

•Group A: Parent to Child: €400,000

•Group B: Sibling, Niece, Nephew, Grandparent etc. €40,000

•Group C: Anybody other than Group A or B: €20,000

Planning long-term with certain Revenue-approved policies can reduce these onerous inter-generational taxes. Please talk to us in more detail about this.