New Capital Acquisitions Tax Thresholds (February 2010)

Gifts and inheritances are taxable under the CAT legislation at a current rate of 25%.

All benefits taken from the same group since 5 December 1991, are added together to determine if a threshold has been met and if so, tax is calculated by reference to the excess over that threshold.

With effect from 1st January 2010, these tax-free thresholds were decreased and are now as follows:

Group A

Son/Daughter

Group Threshold from 8th April 2009 to 31st December 2009 = €434,000
New Group Threshold from 1st January 2010 = €414,799

Group B

Brother/Sister/Niece/Nephew/Grandchild

Group Threshold from 8th April 2009 to 31st December 2009 = €43,400
New Group Threshold from 1st January 2010 = €41,481

Group C

Relationship other than Group A or B

Group Threshold from 8th April 2009 to 31st December 2009 = €21,700
New Group Threshold from 1st January 2010 = €20,740

Careful advice should be sought in all circumstances, as proper structuring may assist in minimising your tax liability.