Budget 2027 has increased the amount of money or assets a person can receive as a gift or inheritance before having to pay Capital Acquisitions Tax (CAT). CAT is a tax that may apply when you receive a gift or inheritance depending on the value of the gift/inheritance. The relevant CAT tax-free threshold that applies will depend on your relationship with the person giving you the gift or leaving you an inheritance. The Budget 2027 increases to the CAT tax-free thresholds are as follows:
- CAT Group A – Children: The Group A tax-free threshold has increased from €400,000 to €420,000 for gifts and inheritances from parents to children.
- CAT Group B – Certain relatives: The Group B tax-free threshold has increased from €40,000 to €44,000. This group gifts and inheritances received from certain relatives such as siblings grandparents, nieces and nephews.
- CAT Group C – Other relationships: The Group C tax-free threshold has increased from €20,000 to €22,000. This generally applies to gifts and inheritances received from people outside Groups A and B.
Any gift or inheritance received that is above the relevant tax-free threshold is subject to CAT at the current rate of 33%. The amount you can receive tax-free may also be affected by previous gifts or inheritances already received by you in the same CAT group which will reduce the amount you can receive tax-free.
The revised thresholds apply from the 7 October 2026.
If you have any queries in relation to Wills and Probate, please do not hesitate to contact us on 01 2960666.
