Inheritance tax is a tax in
Ireland that is charged on gifts or inheritances. Unlike other countries,
Ireland places the tax liability on the beneficiary and not on the estate. As
inheritance tax rates in Ireland are one of the highest in Europe, it is
extremely important that you engage the services of a professional to ensure you
manage your estate in a tax efficient manner in order to avail of any tax
reliefs available which will limit the tax liability of the intended
beneficiary. Our private client department
has the creativity, intelligence, and knowledge of domestic Law to advise on
even the most complex wealth, property, and asset structures.
What is the rate of Inheritance Tax in Ireland?
rate of Capital Acquisition Tax (CAT), also known as Inheritance Tax or Gift
Tax, is 33% on all gifts or inheritances which exceed your tax free threshold.
inheritances or gifts are tax-free; there are three different thresholds
depending on the relationship between the recipient and the donor, as follows:
Group A: a tax-free
threshold of €320,000 which applies where the beneficiary is a:
- child (including an adopted child, stepchild and certain foster children), or a;
- minor child of a deceased child of the disponer (donor), or a;
- parent where they take an absolute inheritance following the child’s death in certain circumstances.
Group B: a tax-free threshold of €32,500
which applies where the beneficiary is a:
- parent where threshold A does not apply, or a;
- brother or sister, or a;
- nephew or niece, or a;
- lineal ancestor or lineal descendant of the disponer
Group C: In all other cases the tax-free
threshold is €16,250
What do I have to pay CAT on?
The following can be subject to CAT:
- stocks and shares
- an interest-free loan
- the right to live in a house for life
Inheritance tax is not payable on a gift or
inheritance if it is:
- given to you by your spouse or civil
- the total is below the group threshold
amount (when its value is added to previous gifts and inheritances in the same
Relief from Inheritance Tax
Inheritance and gift tax relief is available certain circumstances. Our solicitors will assist you in identifying any opportunities to avail of such reliefs and exemptions and will provide expert advice to you drafting your will in a tax efficient manner.
Why choose Lavelle Partners to assist you with estate planning, Wills and Probate matters?
are a partner-led firm, meaning the partner you meet will manage your case and
be available to you if you have any questions.
have strong relationships with top Dublin-based wealth managers and accountants
who we work closely with in providing you with tax and estate planning advices
so that you can avail of the best tax planning measures to meet your
Morrow is currently studying for her STEP Diploma.
Solicitors are approachable, solution based and pragmatic. We will assess your situation objectively and
create a tailored structure to meet your specific requirements.
have a strong long-term client base who recommend us for our tailored advice,
customer service and attention to detail.
For further information regarding inheritance tax
in Ireland, please contact Lavelle Partners in confidence on (01) 644 5800.