If someone is leaving you money or property, the number that matters is the CAT thresholds in Ireland for your relationship to them. Capital acquisitions tax is charged at 33% on whatever you receive above your group threshold, and Budget 2027 raised all three thresholds for gifts and inheritances received on or after 7 October 2026. The table comes first, then worked examples, the filing rules and the dates.
Key takeaways on CAT thresholds
- Group A (a child receiving from a parent) is now €420,000, up from €400,000, for benefits received on or after 7 October 2026.
- Group B (for example a brother, sister, niece, nephew or grandchild) is €44,000, up from €40,000, and Group C (everyone else) is €22,000, up from €20,000.
- CAT is 33% of the amount over your threshold, and everything you have received in the same group since 5 December 1991 counts towards it.
- You must file an IT38 return if your total benefits exceed 80% of the threshold, which is €336,000 for Group A.
- The first €3,000 a year from any one person as a gift is exempt, and inheritances from a spouse or civil partner are not subject to CAT.
What are the CAT thresholds in Ireland in 2026?
The CAT group A threshold is €420,000 for gifts and inheritances received on or after 7 October 2026, up from €400,000. Group B is €44,000 (from €40,000) and Group C is €22,000 (from €20,000). The rate stays at 33% on anything above the threshold.
| Group | Who it covers | Before 7 October 2026 | From 7 October 2026 |
|---|---|---|---|
| A | Child receiving from a parent | €400,000 | €420,000 |
| B | Brother, sister, niece, nephew, grandchild | €40,000 | €44,000 |
| C | Everyone else, such as a friend or cousin | €20,000 | €22,000 |
The threshold that applies depends on the date of the gift or inheritance, and for an inheritance that is usually the date of death, according to Revenue. A death on 5 October 2026 would normally be tested against the old figures, and one on 8 October against the new. The Budget 2027 changes did not alter the 33% rate.
How is CAT calculated on a gift or inheritance?
CAT is 33% of the amount by which everything you have received in your group exceeds your threshold. A child inheriting €520,000 from a parent, with no earlier gifts, pays 33% on €100,000 (€520,000 less €420,000), which is €33,000. Earlier gifts from the same group use up the threshold first.
| Case (received after 7 October 2026) | Calculation | CAT |
|---|---|---|
| Child inherits €520,000 from a parent, nothing received before | (€520,000 – €420,000) x 33% | €33,000 |
| Same child, who already received a taxable €100,000 gift from a parent | Threshold left €320,000; (€520,000 – €320,000) x 33% | €66,000 |
| Sibling inherits €100,000 | (€100,000 – €44,000) x 33% | €18,480 |
| Friend receives €50,000 | (€50,000 – €22,000) x 33% | €9,240 |
These examples assume no exemptions or reliefs apply and no other benefits in the group. They show why the history matters as much as the headline number.
What counts towards your CAT threshold?
Everything you have received from anyone in the same group since 5 December 1991 counts towards one lifetime threshold. Benefits in different groups are tested separately, and the €3,000 gift exemption is ignored. A gift from your mother and an inheritance from your father both use the same Group A allowance.
That lifetime test is where people go wrong, because a gift made fifteen years ago is easy to forget. Revenue’s page on CAT thresholds and aggregation rules sets out the detail.
Do you need to file a CAT return?
Yes, if your total benefits in a group exceed 80% of the threshold, you must file an IT38 return, even when no tax is due. From 7 October 2026 that is €336,000 for Group A, €35,200 for Group B and €17,600 for Group C. You must also file if you claim agricultural or business relief.
The deadline depends on the valuation date. A valuation date from 1 January to 31 August means you pay and file by 31 October that year. A date from 1 September to 31 December means 31 October of the following year. For valuation dates up to 31 August 2026, ROS filers who file and pay online have until Wednesday 18 November 2026. Revenue lists the important dates for CAT on one page.
Does the small gift exemption help?
Yes. The first €3,000 you receive as a gift from any one person in a calendar year is exempt from CAT, and you can receive that from several people. It does not apply to inheritances, and it is ignored when your thresholds are tested. Revenue explains the small gift exemption with the 80% filing rule.
What does this mean for a Dublin family home or a Kerry farm?
A Dublin family home can be worth more than a Group A threshold on its own, and the value that counts is the market value at the valuation date, so get a proper valuation rather than a guess. A tax advisor in Dublin can work out the position with you online.
A Kerry farmer passing land to a son or daughter is making a Group A transfer, and if agricultural relief is claimed a return must be filed even when the value is below 80% of the threshold. A chartered accountant in Kerry handles this for families from Castlemaine, Co. Kerry, and the work is done online for clients all over Ireland.
Can you deal with CAT yourself?
A single gift under €3,000 needs no return at all, and an inheritance from a spouse is outside CAT. A modest inheritance from a parent with no earlier gifts, well under 80% of the threshold, is usually a matter of keeping a record of it.
Help is worth having when earlier gifts have to be traced back to 1991, when a house, shares or a business need valuing, or when a relief is involved. Our capital acquisitions tax page and the older CAT guide cover what we do, and we file the tax return side for clients who also have other income to report. Fuchsia Bell is run by Gero O’Connor, a chartered accountant in Castlemaine.
Frequently Asked Questions
What is the CAT group A threshold in 2026?
The group A threshold is €420,000 for gifts and inheritances received on or after 7 October 2026. Before that date it was €400,000. It applies to a child receiving from a parent, and it counts everything received from parents since 5 December 1991, not just the latest gift or inheritance.
How much can I inherit from a parent tax-free in Ireland?
You can receive up to €420,000 in total from your parents, counting earlier gifts and inheritances, before CAT applies, for benefits received on or after 7 October 2026. Anything above that is taxed at 33%. A spouse or civil partner inherits free of CAT, and the small gift exemption sits outside the threshold.
Do I pay inheritance tax on money from my spouse?
No. Inheritances from a spouse or civil partner are not subject to CAT, so the thresholds do not come into it. They matter later: when the surviving spouse passes assets to children, the children’s Group A threshold applies to what they receive from each parent.
What is the CAT rate in Ireland?
The CAT rate is 33%, and Budget 2027 did not change it. It applies only to the part of your total benefits above your group threshold. A Group A beneficiary who has received €430,000 in total, for example, pays 33% on the €10,000 above €420,000, which is €3,300.
When is the CAT return due?
It depends on the valuation date. For valuation dates from 1 January to 31 August you pay and file by 31 October the same year, and for 1 September to 31 December by 31 October the next year. For 2026, ROS filers who file and pay online have until 18 November 2026.
If you have inherited a house or farm, or received gifts from a parent over the years and cannot say what is left of your threshold, a chartered accountant can trace the earlier benefits and tell you whether a return is due before the date arrives.
