Inheritance Tax Planning

Capital Acquisitions Tax – Inheritance and Gift Tax  

This tax may apply when someone receives a gift or inheritance. Over recent years the thresholds have been reduced significantly and the tax rates have increased.
Currently, each child can receive a gift or inheritance up to the value of €320,000 from a parent (known as parent to child threshold). Other threshold amounts apply depending on the relationship between the person who receives the gift/inheritance and the doner. The current tax rate is 33% (2020) Other factors to consider:
Gifts/inheritances that may have already been received, since 5th December 1991. Exemptions for example: Private Dwelling home, Business relief/Farm relief.
The reality is that CAT can significantly reduce the value of a gift or inheritance.  Therefore it is good practice to be aware of the thresholds and use them to their full potential.  Where possible you should plan ahead so as to minimise the amount of CAT due by fully utilising the various reliefs and exemptions that are available. At RMC Financial Services, we can offer you impartial advice in the area of capital acquisitions tax planning.  We can help you to put plans in place to reduce this potential tax liability for your family.

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RMC Financial Services

Unit 9, Glenrock house

Glenrock Business Park

Ballybane, Galway H91 AXN2