Gift and Inheritance Tax
Capital Acquisitions Tax is the name given to the tax charged on a gift or on an inheritance.
Westland Tax & Accountancy Ltd, Accountants and Tax Advisors, provide services and advice in relation to Gift and Inheritance Tax including:
• Advice and calculation of Gift Tax
• Advice & calculation of Inheritance Tax
Gift and Inheritance Exemption Limits
What amount can an individual receive without paying Gift Tax or Inheritance Tax?
In general it is the relationship between the two parties that dictates the exempt amount.
If you are receiving a gift from your spouse or receiving an inheritance from your deceased spouse, the gift or inheritance is completely exempt and, no matter how valuable, will not be liable to Gift or Inheritance Tax.
In other cases, the exempt amounts are as follows:
GROUP 1 GIFT OR INHERITANCE TO SON/DAUGHTER OR MINOR CHILD OF DECEASED CHILD TAX FREE AMOUNT IS €335,000 FOR EACH SON OR DAUGHTER
GROUP 2 OTHER LINEAL ANCESTOR – BROTHER, SISTER OR CHILD OF DECEASED BROTHER OR SISTER €32,500
GROUP 3 OTHERS €16,250
Gifts and Inheritances that exceed the Threshold Amounts are subject to Capital Acquisitions Tax at 33%
The above are lifetime limits for each threshold. In addition there is an additional €3,000 gift exemption available each year.
As usual various terms and conditions apply and there are some circumstances where a different group will apply. You should always take professional advice.
Important – When you gift an asset, it is a disposal for the purposes of Capital Gains Tax and may trigger a Capital Gains Tax liability. There may also be Stamp Duty applicable on the transfer.
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