Gift / Inheritance Tax

Rates
Portion of taxable value of benefits % (From 08/04/09) % (From 07/12/11) % (From 06/12/12)
The threshold amount Nil Nil Nil
The balance 25 30 33
Notes
  1. The rates of inheritance tax and gift tax are applied by reference to the aggregate of all taxable inheritances and taxable gifts taken after 5th December 1991 by the beneficiary being taxed. Inheritances or gifts taken before 5th December 1991 are not aggregated in relation to inheritances or gifts taken on or after that date.
  2. Tax rates were considerably higher for benefits taken prior to 1st December 1999 and differed between gifts and inheritances.
  3. For the purpose of Gift and Inheritance Tax, the relationship between the person who provided the gift or inheritance (i.e. the Disposer) and the person who received the gift or inheritance (i.e. the beneficiary), determines the maximum tax free threshold – known as the “group threshold”.
  4. For the new indexed threshold amounts, see table below.
Indexed Threshold Amounts
Relationship to donor Gift or inheritance in
From 08/04/09 (€) From 01/01/10 (€) From 08/12/10 (€) From 01/01/11 (€) From 07/12/11 (€) From 06/12/12 (€)
Son/Daughter 434,000 414,799 332,084 332,084 250,000 225,000
Parent*/ Brother/ Sister/ Niece/ Nephew/ Grandchild 43,400 41,481 33,208 33,208 33,500 30,150
Any other person 21,700 20,740 16,604 16,604 16,750 15,075

* In certain circumstances a parent taking an inheritance from a child can qualify for the Group A threshold.

Agricultural Relief
CAT relief is available in respect of gifts and inheritances of agricultural property including land, subject to certain conditions. At present, individuals are entitled to the relief based on a definition of ‘farmers’ that is related to asset values. A change is being introduced to target the relief at active farmers to ensure productive use of agricultural property. From 1 January 2015, and subject to other conditions, the relief will be available only in respect of agricultural property gifted to or inherited by an individual who subsequently uses the property for agricultural purposes for a period of not less than six years or who leases out the agricultural property for not less than six years for agricultural use. To qualify for the relief the beneficiary or lessee must spend not less than 50 per cent of his or her normal working time farming agricultural property (including the agricultural property comprised in the gift or inheritance) on a commercial basis and with a view to the realisation of profits from that agricultural property. The amendment applies in relation to gifts or inheritances taken on or after 1 January 2015.
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