Gift / Inheritance Tax

Tax Toolkit / Gift / Inheritance Tax

Rates

Portion of taxable value of benefits % (From 08/04/09) % (From 07/12/11) % (From 06/12/12)
The threshold amount Nil Nil Nil
The balance 25 30 33
Notes
  • The rates of inheritance tax and gift tax are applied by reference to the aggregate of all taxable inheritances and taxable gifts taken after 5th December 1991 by the beneficiary being taxed. Inheritances or gifts taken before 5th December 1991 are not aggregated in relation to inheritances or gifts taken on or after that date.
  • Tax rates were considerably higher for benefits taken prior to 1st December 1999 and differed between gifts and inheritances.
  • For the purpose of Gift and Inheritance Tax, the relationship between the person who provided the gift or inheritance (i.e. the Disposer) and the person who received the gift or inheritance (i.e. the beneficiary), determines the maximum tax free threshold – known as the “group threshold”.
  • For the new indexed threshold amounts, see table below.

Indexed Threshold Amounts

Relationship to donor Gift or inheritance in
From 08/04/09 From 01/01/10 From 08/12/10 From 01/01/11 From 07/12/11 From 06/12/12
Son/Daughter €434,000 €414,799 €332,084 €332,084 €250,000 €225,000
Parent*/ Brother/ Sister/ Niece/ Nephew/ Grandchild €43,400 €41,481 €33,208 €33,208 €33,500 €30,150
Any other person €21,700 €20,740 €16,604 €16,604 €16,750 €15,075

* In certain circumstances a parent taking an inheritance from a child can qualify for the Group A threshold.

Gift or inheritance in Relationship to donor
Son/Daughter Parent*/ Brother/ Sister/ Niece/ Nephew/ Grandchild Any other person
From 08/04/09 €434,000 €43,400 €21,700
From 01/01/10 €414,799 €41,481 €20,740
From 08/12/10 €332,084 €33,208 €16,604
From 01/01/11 €332,084 €33,208 €16,604
From 07/12/11 €250,000 €33,500 €16,750
From 06/12/12 €225,000 €30,150 €15,075

* In certain circumstances a parent taking an inheritance from a child can qualify for the Group A threshold.


Agricultural Relief

The tax relief on interest paid on qualifying home loans is 25% for years 1 and 2; 22.5% for years 3, 4 & 5 and 20% for years 6 and 7. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €20,000 for individuals who are married, in a civil partnership or widowed and €10,000 for individuals who are unmarried and not in a civil partnership. After year 7, the rates and thresholds for relief are as for non-first time buyers.


Non-first time buyers

CAT relief is available in respect of gifts and inheritances of agricultural property including land, subject to certain conditions. At present, individuals are entitled to the relief based on a definition of ‘farmers’ that is related to asset values. A change is being introduced to target the relief at active farmers to ensure productive use of agricultural property. From 1 January 2015, and subject to other conditions, the relief will be available only in respect of agricultural property gifted to or inherited by an individual who subsequently uses the property for agricultural purposes for a period of not less than six years or who leases out the agricultural property for not less than six years for agricultural use. To qualify for the relief the beneficiary or lessee must spend not less than 50 per cent of his or her normal working time farming agricultural property (including the agricultural property comprised in the gift or inheritance) on a commercial basis and with a view to the realisation of profits from that agricultural property. The amendment applies in relation to gifts or inheritances taken on or after 1 January 2015.


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