Revenue has confirmed the CAT tax free threshold figures for 2009 as follows:
Group A EUR542,544
Group B EUR54,254
Group C EUR27,127
For the purposes of calculating CAT, the aggregate of gifts and inheritances taken from disponers to which the same tax-free group thresholds apply is taken into account when calculating CAT. The aggregate is then reduced by the tax-free amount and the balance is taxed at 22%.
The Group A threshold applies where the beneficiary is -
- a child, or a minor child of a deceased child of the disponer.
- a parent taking an absolute inheritance from a child have a Group A threshold. However, if the child took a non-exempt gift or inheritance from either parent in the previous five years, any inheritance taken by a parent from that child is exempt.
The Group B threshold applies where the beneficiary is -
- a lineal ancestor e.g. parent or grandparent (parent takes a Group B threshold where they take a gift or a limited interest in an inheritance)
- a lineal descendant e.g. a grandchild or great-grandchild;
- a brother or sister;
- a child of a brother or sister of the disponer.
The Group C threshold applies to "strangers" i.e. where the relationship between disponer and beneficiary falls outside either Group A or Group B.