The CAT thresholds for 2026 are EUR 400,000 (Group A, child from parent), EUR 40,000 (Group B, sibling/niece/nephew/grandchild), and EUR 20,000 (Group C, all others). Here is what you need to know.
The most important thing to understand is that these thresholds cover your entire lifetime. Every gift or inheritance you receive from donors in the same group is aggregated. If you received EUR 50,000 from your parents 10 years ago and inherit EUR 380,000 now, your total is EUR 430,000, which exceeds the EUR 400,000 Group A threshold by EUR 30,000. You owe 33% on the EUR 30,000 excess.
EUR 3,000 per donor per year is exempt and does not count against your lifetime threshold. This is a powerful planning tool when used consistently over many years.
Anna received EUR 100,000 from her mother in 2018 and is now inheriting EUR 340,000 from her father. Both are Group A. Aggregate: EUR 100,000 + EUR 340,000 = EUR 440,000. Threshold: EUR 400,000. Taxable: EUR 40,000. CAT: EUR 40,000 x 33% = EUR 13,200.
If Anna's parents had used the small gift exemption to give EUR 3,000 each per year for 10 years, that would have transferred EUR 60,000 outside the CAT net (EUR 3,000 x 2 parents x 10 years). The aggregate would be EUR 380,000, under the threshold, and Anna would owe nothing.
Transfers between spouses or civil partners are fully exempt from CAT. There is no threshold and no limit. This exemption is absolute and applies regardless of the value transferred.
A beneficiary can inherit a dwelling house free of CAT if they have lived in it as their main home for 3 years before the inheritance and do not own any other residential property. They must continue to live in the property for 6 years after inheriting. The conditions are strict: even owning a small share of another property can disqualify the exemption.
CAT returns are filed on Form IT38 (or IT38S for simpler cases) by 31 October of the year following the year in which the valuation date falls. For ROS filers, the deadline extends to approximately mid-November. Payment is due on the same date.
Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.