Inheritance and Estate Planning

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.

These include:

  • 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.

There is no CAT between spouses, so the focus of most CAT planning is passing wealth to the next generation.