What is Inheritance Tax?

Inheritance Tax arises where you (the beneficiary) receive an inheritance as a result of someone dying. The beneficiary is liable for paying tax if the inheritance is over a certain limit or threshold.  These thresholds are calculated subject to the relationship between the disponer (the person providing the inheritance) and the beneficiary. This tax is known as Capital Acquisition Tax (CAT).
 

The inheritance (benefit) is taxed if its value exceeds the threshold limits. There are also different tax-free thresholds, depending on the relationship between the disponer and the beneficiary. If you are the recipient of an inheritance from your spouse or civil partner, you are exempt from CAT.

There are also a number of exemptions and reliefs that depend on the type of  inheritance. The tax applies to all property that is owned in Ireland by the disponer. If the property is not located in Ireland but the person giving the benefit or the person receiving it are ordinarily resident in Ireland for tax purposes, then the tax applies.

Thresholds for Inheritance/Capital as of 01/01/2015.

Group	Relationship  to Disponer	Group Threshold from  01/01/2015 to 13/10/2015	Group Threshold from 14/10/2015 to 11/10/2016	Group Threshold from 12/10/2016 onwards
A	Son/Daughter	€225,000	€280,000	€310,000
B	Parent*/Brother/Sister/ Niece/Nephew/Grandchild	€30,150	€30,150	€32,500
C	Relationship other than Group A or B	€15,075	€15,075	€16,250

This area of law is complex and there are numerous issues to be considered. If you would like to set up a consultation with a solicitor experienced in this area of law please phone us at 01 8744 422 or fill in our online inquiry form and a Client Care Executive will be in contact with you. Our Client Care Executive’s are non-lawyers with a considerable track record of helping people with legal issues. They will also organise an appointment with an experienced solicitor.

Revenue Guide to Inheritance Tax.