Capital Acquisitions Tax (CAT) | Easy Money Calc Glossary

Ireland's gift and inheritance tax — a 33% charge on assets received above lifetime tax-free thresholds set by the relationship between giver and recipient.

Capital Acquisitions Tax (CAT) is Ireland’s combined gift and inheritance tax. It is paid by the recipient of the gift or inheritance — not the giver or the estate — at a flat 33% on amounts above the relevant tax-free threshold.

There are three thresholds, set by the relationship between giver and recipient and accumulated across the recipient’s lifetime:

Group A (€400,000 in 2026): child receiving from a parent.
Group B (€40,000): wider family — siblings, nieces, nephews, grandchildren, and so on.
Group C (€20,000): everyone else, including unrelated friends.

The thresholds are aggregate across a lifetime: each new gift or inheritance from the same group eats into the same allowance. A child who inherits €350,000 from a parent has €50,000 of the Group A threshold left for future receipts.

There is also a small-gift exemption of €3,000 per donor per recipient per year, which sits outside the thresholds — a frequently used way of moving assets gradually. Spouses and civil partners pass assets to each other CAT-free, and the family home can qualify for full relief if the recipient meets occupancy conditions.

CAT returns (Form IT38) are filed and paid by 31 October following the year of receipt.