8 May 2025
By Valerie Ryan
valerie@TheCork.ie
If a gift or inheritance is exempt from CAT, you do not have pay the tax on it and it does not count towards your tax-free threshold.
The following are exempt from Capital Acquisitions Tax.
From or regarding family
- Gifts or inheritances from your spouse or civil partner
- Gifts for the support, maintenance or education of a child or dependent relative of yours or your spouse or civil partner
- An inheritance you get from your child if, in the previous 5 years, they took a gift or inheritance from either parent and it was not exempt from CAT
Retirement, work or health related
- Retirement benefits, pension and redundancy payments paid to you by your employer. The exemption may not apply if your employer is a relative or a private company you control and the payments are excessive.
- If you are permanently incapacitated, benefits you get that are only for paying your medical expenses.
Other types
- Payments for damages or compensation
- Benefits taken for charitable purposes
- Winnings from a lottery, sweepstake, game or bet
- A benefit to reduce debt if you are bankrupt or under a debt resolution procedure
- Certain heritage property
Small gift exemption
The first €3,000 of the total value of all gifts from any one person in any calendar year is exempt. So, you could get a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT.
You do not need to make a Capital Acquisitions Tax return to claim the small gift exemption for gifts under this limit.
This exemption does not apply to inheritances.
Dwelling house exemption
If you get a gift or inheritance of a house that has been your main residence, it may be exempt from tax if you do not own or have an interest in any other house. There are conditions on how long you must be resident in the house before and after receiving the benefit.
Citizens Information
Further information on this and other topics is available from Cork City Centre CIC in Cornmarket Street, open to the public on Mondays, Tuesdays, Thursdays and Fridays from 9.45am to 12.30pm and Wednesdays from 2pm to 4pm, Tel 0818 07 6950 (Lines open Mon-Fri 10am-4.30pm). Blackpool CIC is also open to the public on Tuesdays and Thursdays from 10am to 1pm and 2pm to 4pm, Tel 0818 07 6890 while Hollyhill CIC is open Mondays and Fridays from 10am to 1pm and 2pm to 4pm, Tel: 0818 07 6850.
Information is also available from the Citizens Information Phone Service Tel: 0818 07 4000 (9am – 8pm, Mon – Fri) or online at www.citizensinformation.ie