Capital Acquisitions Tax
Capital Acquisitions Tax (CAT) is a tax on gifts, inheritances or discretionary trusts. The vast majority of people will encounter this tax on the death of a relative. The rate of tax is 33% but there are a number of exemptions and thresholds which reduce its impact, particularly in the case of an inheritance from a parent. It should be noted that the thresholds have been constantly eroded by successive budgets over the last number of years.
The Succession Act dictates how your estate is divided should you die without leaving a will. This can have tax consequences for your family so it is worth receiving advice regarding the consequences of having no will and planning for all eventualities. None of us live forever and we can reduce the pain of our passing for our loved ones by giving some thought to a will now. It should be noted that the thresholds have been constantly eroded by successive budgets over the last number of years. Even if you have a will in place, it is worth reviewing the tax position your beneficiaries may be in should the inevitable happen. Contact us on 051-873913 for a consultation.
Sometimes we may wish to give a gift to family or friends. It may be a portion of a lottery win or a windfall gain that we want to share. You can give up to €3,000 per annum to an individual. Once the gift is higher than this amount then it may be worth thinking about planning the gift from a tax perspective.