Exemption thresholds

For 2011, the group thresholds (Schedule 2 para 1) are:

(a) €332,084 (Group 1), where your relationship to the disponer is: son or daughter, minor child of a predeceased son or daughter, parent (in the case of a non-limited interest taken on the death of a child). Child includes a foster child (since 6 December 2000) and an adopted child (since 30 March 2001).

(b) €33,208 (Group 2), where your relationship to the disponer is: lineal ancestor, lineal descendant (not within (a)), brother or sister, nephew or niece.

(c) €16,604 (Group 3), where your relationship to the disponer is: cousin or stranger.

For gifts and inheritances taken since 5 December 2001, only prior benefits received since 5 December 1991 from the same person within the same group threshold are aggregated with the current benefit in computing tax payable on the current benefit.

Other exemptions

The main exemptions from capital acquisitions tax are:

(a) Spouses’ exemption: Property you receive from your spouse is exempt from gift tax (s 70), inheritance tax (s 71), and probate tax (FA 1993 s 115A).

The exemption also applies in the case of separated or divorced couples where the property passes by Court order (s 88).

(b) Principal private residence. To qualify, you must have lived:

(i) for three years ending on the transfer date in the residence, or

(ii) for three of the four years ending on the transfer date in the residence and the residence which it has replaced.

In addition, you must not have any other private residence and you must not dispose of the residence for six years after the transfer to you (s 86).

(c) An inheritance taken by you from your pre-deceased child (s 79).

(d) The first €3,000 of gifts taken in each calendar year (s 69).

(e) A gift or inheritance taken for public or charitable purposes (s 76).

(f) Objects of national, scientific, historic, or artistic interest, which the public are allowed to view (s 77). This relief also extends to heritage property owned through a private company (s 78).

(g) Pension lump sums (s 80).

(h) If you are not domiciled or resident in the Republic of Ireland, securities acquired by you from a disponer who held them for at least three years (s 81).

(i) Personal injury compensation or damages, and lottery winnings. This exemption also covers reasonable support, maintenance, or education payments received by your minor child if you and the child’s other parent are dead (s 82).

(j) Property acquired under a self-made disposition (s 83).