Capital Acquisitions Tax Ireland: 2026 Guide
Capital Acquisitions Tax (CAT) is the tax that applies in Ireland when someone receives a gift or inheritance above the relevant threshold. If you are planning your estate, understanding CAT is critical because it directly affects what your family keeps.
How CAT works
The standard CAT rate is 33% on the taxable amount above the available threshold. Beneficiaries are usually taxed based on their relationship to the disponer (the person giving/leaving assets).
Threshold groups
- Group A: typically children inheriting from parents.
- Group B: close relatives such as siblings/nieces/nephews.
- Group C: all others.
Threshold usage is cumulative, so prior gifts/inheritances can reduce the threshold available on later inheritances.
What catches families out
- No record of lifetime gifts
- No liquidity to pay CAT on non-cash assets
- Assuming reliefs apply automatically
- Outdated wills that no longer match the family situation
Reliefs that may reduce CAT
- Spouse/civil partner exemption
- Agricultural Relief (where qualifying conditions apply)
- Business Relief (for qualifying business assets)
Reliefs are technical and condition-based, so evidence and timing matter.
Practical CAT planning checklist
- Keep a current will
- Track gifts and values over time
- Map asset ownership and beneficiary outcomes
- Model potential CAT exposure by beneficiary
- Plan liquidity to avoid forced sales
Related reading: Irish Inheritance Tax 2026 and Legal Requirements for a Valid Will in Ireland.
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