What Is Capital Acquisitions Tax?
Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances received by an individual. It is charged on the market value of the benefit received above certain tax-free thresholds, which depend on the relationship between the giver and the recipient.
Updated for 2026 Revenue rates.
Group Thresholds (Tax-Free Amounts)
CAT exempts certain amounts based on the relationship between the disponer (the person giving the gift or inheritance) and the beneficiary:
- Group A (€400,000) — gifts/inheritances from a parent to a child. Also applies to a foster child who has been in the care of the disponer for at least 5 years
- Group B (€32,500) — gifts/inheritances from a lineal ancestor (grandparent, great-grandparent) to a lineal descendant (grandchild, great-grandchild). Also brothers, sisters, nieces, nephews, and children of a civil partner
- Group C (€16,250) — gifts/inheritances to any other person not covered by Group A or B
These thresholds are lifetime limits — they apply to the cumulative value of all gifts and inheritances received from people in the same Group.
CAT Rate
The rate of CAT is 33% on the value of gifts or inheritances exceeding the relevant group threshold.
Small Gift Exemption
Gifts of up to €3,000 per year from any one person are exempt from CAT. This exemption is per disponer, not per beneficiary, so you can receive multiple €3,000 gifts from different people each year without tax consequences.
Agricultural Relief
Agricultural property may qualify for a 90% reduction in its market value for CAT purposes, meaning only 10% of the value is subject to tax. Conditions include:
- The beneficiary must be a farmer (at least 50% of their net worth in agricultural assets after the inheritance)
- The property must be agricultural land, buildings, or stock
- The beneficiary must retain the property for at least 6 years
Business Relief
Similar to agricultural relief, business relief provides a 90% reduction in value for gifts/inheritances of business property. Conditions:
- The business must be a qualifying trade or profession
- Business assets may include shares in a family company, sole trader assets, or partnership interests
- The beneficiary must retain the assets for at least 6 years
Favourite-Niece/Nephew Relief
A niece or nephew who has worked substantially full-time in the disponer's family business for at least 5 years may qualify for the Group A threshold (€400,000) rather than the Group B threshold, making them eligible for the same tax-free amount as a child.
Dwelling House Exemption
A dwelling house inherited or received as a gift may be exempt from CAT if:
- The beneficiary lived with the disponer for at least 3 years prior to the gift/inheritance
- The beneficiary has no other dwelling house
- The beneficiary does not dispose of the house within 6 years
Filing and Payment
CAT returns must be filed and tax paid by 31 October of the year following the year the gift or inheritance is taken. Returns are filed through Revenue's online service. Late filing incurs interest and surcharges.