Capital Acquisitions Tax (CAT) is charged on gifts or inheritances. A gift is given during the person’s lifetime whereas an inheritance is taken on death. Gifts and inheritances can comprise of businesses, farms, houses, investments and other assets. Nowadays people need to plan in advance so that there is not a large tax liability in the event of a gift or a death.
Everyone is obliged to file a return with Revenue in the case of a gift or inheritance.
There are certain tax free thresholds depending on the relationship between the donor and beneficiary.
There are relief’s and exemptions available to reduce the tax liability eg Farm or Business Relief and Dwelling House Relief. Certain conditions have to be met in order to qualify for these relief’s.
Capital Acquisitions Tax is payable:
At 33% from 6th December 2012
Capital Gains Tax and Stamp Duty may also be payable on a gift.
We can advise you on all aspects of gifts and inheritances and calculate CAT payable, ensure you get all the relief’s you are entitled to and complete and file your return with Revenue.