Budget 2025 includes an increase in the amount that an individual can inherit or receive as a gift from a relative before being required to pay Capital Acquisitions Tax, reports RTE.
There will be an increase from €335,000 to €400,000 in the Group A threshold for CAT, which covers inheritances or gifts from parents to their offspring.
Gifts or inheritances from siblings will fall within the Group B level, which will now be worth €40,000 instead of €32,000.
In the meanwhile, the €20,000 threshold will replace the €16,250 level for Group C, which covers inheritances and gifts to relatives such as uncles, aunts, or cousins, reports RTE.
The last time the criteria were raised was in 2019.
Speaking on the adjustments, Minister of Finance Jack Chambers stated that he thought they were acceptable considering the recent rise in house values.
“Changes announced in Budget 2025 in terms of Inheritance and Capital Acquisition Taxes will be welcomed across the country, in particular the increase in the Group A threshold for transfer within families to €400,000,” said Alison McHugh, EY Ireland Head of Private Client Services, reports RTE.
“Changes to the Group B and Group C thresholds go further than have been expected, however, as these bands have not increased in many years, this has been some time coming,” she added, reports RTE.
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