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CAT Calculation

Gael23 · 2023-09-19 09:22:13

If you receive an inheritance over your group threshold do you have to pay CAT on the full amount or just that portion in excess of your threshold?

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19-09-2023 10:22am

#1

Gael23

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If you receive an inheritance over your group threshold do you have to pay CAT on the full amount or just that portion in excess of your threshold?

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#2 19-09-2023 10:25am
SureYWouldntYa

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Just the portion in excess of the threshold
E.g. inheritance of €500k from parents, less €335k CAT Group A allowance leaves a chargeable gift of €165k, less annual exemption of €3k leaves a taxable gift of €162k, taxed @ 33% leaves a liability of circa €53k.
Once the full lifetime allowances at a group threshold has been used then there is full exposure to CAT.

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#3 19-09-2023 10:27am
downtheroad

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https://www.boards.ie/discussion/comment/121128950#Comment_121128950

The small gift exemption of €3,000 does not apply to inheritances. Only gifts.

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#4 20-09-2023 9:11am
SureYWouldntYa

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https://www.boards.ie/discussion/comment/121128958#Comment_121128958

Apologies, you are of course correct

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