Capital Acquisitions Tax (known as “CAT”) is a tax on gifts and inheritances. You may receive gifts and inheritances up to a set value over your lifetime before having to pay CAT. Once due, it is charged at the current rate of 33% (valid from 6 December 2012).
There is provision for a tax-free threshold below which no tax is paid, and there are 3 categories of threshold group 1, group 2 and group 3.
Capital Acquisition Tax Thresholds
Seaspray will review all the potential exemptions and reliefs available for each individual client.
- Agricultural relief
- Business relief
- Spouse or civil partner exemption
- Family home relief
Relief can also be obtained through life assurance arrangements. Section 72 Policy:
A Section 72 insurance is a revenue approved life insurance policy. The proceeds of this policy are tax-free if used to settle an inheritance tax bill. It’s a life assurance policy to cover inheritance tax.
For a more detailed analysis of the rules and regulations of Inheritance tax please contact your tax advisor.