Breakdown Of The Increase To The Capital Acquisitions Tax Thresholds Explained By Wills & Probate Solicitors in Cork
As Wills & Probate Solicitors in Cork, Fachtna O’Driscoll Solicitors are here to give you a breakdown of the government budget for 2025 which includes an increase to the Capital Acquisitions Tax thresholds as follows:
A) Group A (gifts/inheritances to a child or to a parent in some circumstances): from €335,000 to €400,000
B) Group B (gifts/inheritances to a parent in some circumstances, a sibling, a child of a sibling, a grandparent, a grandchild in some circumstances): from €32,500 to €40,000
C) Group C (gifts/inheritances to everyone else, including aunts and uncles, cousins and strangers in blood): from €16,250 to €20,000
A CAT threshold is afforded for the life of the beneficiary and not just for each gift or inheritance received, as prior gifts or inheritances taken on or after 5 December 1991 under the same Group are aggregable. Any gifts or inheritances taken after the relevant threshold is applied are liable to CAT at a rate of 33%, unless a CAT exemption applies.
There is no CAT liability on gifts or inheritances taken between spouses.
These changes came into effect on 2nd October 2024 and apply to gifts or inheritances taken after that date.
For further information or to make an appointment please contact our dedicated team of wills and probate solicitors in Cork:
Fachtna O’Driscoll
fachtna.odriscoll@fodlaw.ie
Tel: +353 (0)21 4278131
Brenda Mounsey
