Exemption thresholds

For 2013, the group thresholds (Schedule 2 para 1) are:

(a) €225,000 (Group 1), where the beneficiary’s 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 and an adopted child.

(b) €30,150 (Group 2), where the beneficiary’s relationship to the disponer is: lineal ancestor, lineal descendant (not within (a)), brother or sister, nephew or niece.

(c) €15,075 (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 group threshold are aggregated with the current benefit in computing tax payable on the current benefit.

Other exemptions

The main exemptions from CAT are:

(a) Spouses’ exemption: Property taken from a spouse is exempt from gift tax (s 70) and inheritance tax (s 71).

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, the beneficiary 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.

The beneficiary must not have any other private residence and you must not dispose of the residence for six years after the transfer (s 86).

(c) An inheritance taken from a 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) Personal injury compensation or damages, and lottery winnings. This also covers reasonable support, maintenance, or education payments received by a minor child if the child’s parents are dead (s 82).

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