2014 gift and inheritance tax free thresholds

The Irish gift and inheritance tax free amounts have been reduced and the tax rate has been increased in recent years.

Since 6 December 2012 the Irish gift and inheritance tax (known as capital acquisition tax) lifetime tax free amounts (calculated on an aggregated basis for each Group) have been reduced to:

For a Group A beneficiary - child or minor child of a predeceased child and in certain circumstances widowed spouse/civil partner of a deceased child - tax free amount is €225,000;

For a Group B beneficiary – siblings, other grandchildren and other specified descendants - tax free amount is €30,150;

For a Group C beneficiary - all others - tax free amount is €15,075.

The tax payable on a gift or inheritance is 33% of the taxable benefit.

Benefits to a spouse or civil partner are exempt from capital acquisition tax. Previous benefits must be taken into account when calculating the tax free amount.

Copyright © Jul 2014