IF a gift or inheritance is exempt from Capital Acquisitions Tax (CAT), you do not have pay the tax on it and it does not count towards your tax-free threshold.
The following are exempt from CAT:
From or regarding family
- Gifts or inheritances from your spouse or civil partner.
- Gifts for the support, maintenance or education of a child or dependent relative of yours or your spouse or civil partner.
- An inheritance you get from your child if, in the previous five years, they took a gift or inheritance from either parent and it was not exempt from CAT.
Retirement, work or health related
Retirement benefits, pension and redundancy payments paid to you by your employer.
The exemption may not apply if your employer is a relative or a private company you control and the payments are excessive.
If you are permanently incapacitated, benefits you get that are only for paying your medical expenses.
Other types
- Payments for damages or compensation.
- Benefits taken for charitable purposes.
- Winnings from a lottery, sweepstake, game or bet.
- A benefit to reduce debt if you are bankrupt or under a debt resolution procedure.
- Certain heritage property.
Small gift exemption
The first €3,000 of the total value of all gifts from any one person in any calendar year is exempt.
So, you could get a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT.
You do not need to make a Capital Acquisitions Tax return to claim the small gift exemption for gifts under this limit. This exemption does not apply to inheritances.
Dwelling exemption
If you get a gift or inheritance of a house that has been your main residence, it may be exempt from tax if you do not own or have an interest in any other house.
There are conditions on how long you must be resident in the house before and after receiving the benefit.
For further information call a member of the local Citizens Information Service in West Cork on 0818 07 8390. They will be happy to assist you and if necessary arrange an appointment for you. The offices are staffed from 10am-5pm from Monday to Thursday and on Friday from 10am-4pm. Alternatively you can email [email protected] or log on to www.citizensinformation.ie
