The CAT rate is to increase from 30% to 33% (matching a similar increase to Capital Gains Tax rate) for gifts or inheritances received on or after 6 December 2012.
Group thresholds are to be reduced by 10% from the same date. Therefore gifts or inheritances from a parent, ignoring aggregation, will now be taxable at 33% to the extent the benefit exceeds €225,000. Benefits from group threshold 2, e.g. brothers, sisters, aunts, uncles will be taxable at 33%, ignoring aggregation, to the extent the benefit exceeds €30,150. The final threshold for all other benefits received (the 'stranger threshold') is reduced to €15,075.
Group Threshold
| Year | Group Threshold A son/daughter, minor child of deceased child, (parents –unlimited inheritances only) |
Group Threshold B E.g. parent, brother, sister, niece, nephew, grandchild |
Group Threshold C relationships that do not fall in Group A or B |
|
On or after 6/12/12 |
€225,000 | €30,150 | €15,075 |
See more details here.
