The short answer
Capital Acquisitions Tax (CAT) is the Irish tax that can apply when you receive a gift or inheritance. In 2026, the standard CAT rate is 33%, but you do not simply pay 33% of everything you inherit. Your relationship to the person giving or leaving the assets determines a lifetime tax-free group threshold, and exemptions or reliefs may also apply.
For most families, the useful question is not “What is CAT?” It is: if I leave this house, money or other property to this person, could they face a tax bill?
This guide answers that question in plain English. It is general information rather than individual tax advice, because previous gifts, asset ownership and available reliefs can materially change the result.
The 2026 CAT thresholds at a glance
| Group | 2026 threshold | Common example |
|---|---|---|
| Group A | €400,000 | A child receiving from a parent |
| Group B | €40,000 | A sibling, niece, nephew, grandchild or certain other close relatives |
| Group C | €20,000 | Someone who does not fall within Group A or B |
These are lifetime group thresholds, not a fresh allowance for every inheritance. Taxable gifts and inheritances received within the same group since 5 December 1991 generally have to be added together.
Spouses and civil partners are different: gifts and inheritances between spouses or civil partners are exempt from CAT.
Three simple inheritance examples
Assuming she has not previously used any of her Group A threshold and no adjustment is needed to the taxable value, €300,000 is below the current €400,000 Group A threshold. On those simplified facts, no CAT would arise.
If his full €400,000 Group A threshold is available, the simplified amount above the threshold is €100,000. At 33%, that would produce CAT of €33,000 before considering any exemption, relief or other adjustment.
A sibling generally falls within Group B. If the full €40,000 threshold is available, the simplified excess is €60,000, giving CAT of €19,800 at 33% before any applicable relief or adjustment.
These examples deliberately keep the facts simple. Real CAT calculations can depend on prior benefits, liabilities, consideration, valuation rules, exemptions and reliefs.
Why previous gifts and inheritances matter
A common mistake is to look only at the value of the inheritance being received now. Revenue's aggregation rules mean that earlier taxable gifts and inheritances received in the same group threshold on or after 5 December 1991 generally count as well.
For example, if a child had previously received €150,000 of taxable Group A benefits and later inherited another €300,000 from a parent, the relevant total for threshold purposes would generally be €450,000 rather than €300,000.
This is why two people receiving the same inheritance can have very different CAT bills.
Who actually pays CAT?
CAT is generally a tax on the beneficiary, meaning the person receiving the gift or inheritance. It is therefore useful to think about tax from the recipient's point of view when planning a will.
A will determines who receives your estate. CAT determines whether a beneficiary may owe tax on what they receive. Those are related questions, but they are not the same thing.
When do you have to file a CAT return?
You may have to file an IT38 return even where no CAT is ultimately payable. Revenue states that an IT38 is required where the total taxable value of benefits taken exceeds 80% of the relevant group threshold.
An IT38 is also required when claiming Agricultural Relief or Business Relief, even where the accumulated taxable value does not exceed that 80% level.
The valuation date determines the normal pay-and-file period. Where it falls between 1 January and 31 August, the normal deadline is 31 October that year. Where it falls between 1 September and 31 December, the normal deadline is 31 October of the following year.
For 2026, Revenue has announced a ROS extension to 18 November 2026 for qualifying beneficiaries whose valuation date falls in the year ended 31 August 2026, provided both the CAT return and payment are made through ROS. The ordinary 31 October deadline still matters where the extension conditions are not met.
Important CAT exemptions and reliefs
Spouse or civil partner exemption
A gift or inheritance from your spouse or civil partner is exempt from CAT. This is an exemption, rather than use of a €400,000, €40,000 or €20,000 threshold.
Small Gift Exemption
You can receive gifts of up to €3,000 from any one person in a calendar year without those gifts being taken into account for CAT aggregation. This exemption applies to gifts, not inheritances.
Dwelling House Exemption
An inheritance of a home may be exempt from CAT if the statutory conditions are satisfied. The rules are much narrower than simply “I inherited the family home”, so you should check the current Revenue conditions rather than assume the exemption applies.
Agricultural Relief
Where the conditions are met, Agricultural Relief can reduce the taxable value of qualifying agricultural property by 90%. The recipient must satisfy specific tests, including an asset test and active-farmer requirements. Because the conditions and potential clawbacks matter, farm succession is an area where professional tax and legal advice is sensible.
Business Relief
Business Relief can also reduce the taxable value of qualifying business property by 90%, subject to detailed conditions on the business, the property and ownership periods. Relief can later be withdrawn in some circumstances.
What should ordinary families actually do?
If your estate is straightforward and unlikely to create a CAT issue, the tax side may require very little planning. But it is worth getting professional advice before finalising your estate plan where, for example:
- a child may receive more than the available €400,000 Group A threshold
- you plan to leave substantial assets to siblings, nieces, nephews, friends or an unmarried partner
- you own a farm or family business
- your beneficiary has already received significant gifts or inheritances
- you are relying on Dwelling House, Agricultural or Business Relief
- you own assets outside Ireland or have cross-border tax issues
The key point is that the best distribution in a will is not necessarily the best distribution after tax. Where the figures are significant, tax advice should come before the will is finalised.
A will template is not tax planning
MakeAWILL.ie templates are designed for straightforward Irish will-making situations. They help you record your wishes and execute a will correctly. They do not calculate CAT, determine whether a relief applies or replace individual tax advice.
If CAT could materially affect your family, get the tax position checked first. Once you know how you want the estate distributed, you can then decide whether your circumstances are simple enough for a template.
Which will fits your family situation?
If your affairs are straightforward and you do not need bespoke tax planning, choose the situation that best matches you:
Standard Single Will - €9.99 Single parent with children under 18
Single Parent Will - €29 Married or civil partners, no children
Married Couple Will - No Children - €19 Parent with children under 18
Irish Will for Parents with Minor Children - €39 Married couple with adult children
Married Couple Will - Adult Children - €39
If tax planning is an important part of your decision, get professional advice before choosing how your estate should be divided.
Frequently asked questions
What is the CAT rate in Ireland in 2026?
The current standard CAT rate is 33%. It applies to the taxable amount above the beneficiary's available group threshold after taking account of relevant exemptions, reliefs and calculation rules.
What is the parent-to-child inheritance threshold in 2026?
The current Group A threshold is €400,000. A child receiving from a parent commonly falls within Group A, subject to the statutory relationship rules.
Do I get a new CAT threshold for every inheritance?
No. Taxable gifts and inheritances received within the same group threshold since 5 December 1991 are generally aggregated.
Does a spouse pay inheritance tax in Ireland?
A gift or inheritance received from a spouse or civil partner is exempt from CAT.
Does making a will avoid inheritance tax?
No. A will controls how your estate is distributed, but it does not automatically remove CAT. Thoughtful estate planning can affect the tax outcome, but significant CAT issues should be reviewed with a tax or legal adviser.
Official Revenue references
- Revenue: CAT group thresholds
- Revenue: CAT rates
- Revenue: important CAT dates
- Revenue: spouse and civil partner exemption
- Revenue: Agricultural Relief
- Revenue: Business Relief
Important: This guide provides general information about Irish Capital Acquisitions Tax and is not tax or legal advice. CAT outcomes depend on the beneficiary's history, the assets involved and the facts of the particular gift or inheritance. Revenue rules and deadlines should always be checked when acting on a live transaction or inheritance.
0 comments