Capital Acquisition Tax / Gift Tax Calculator
| Description | Calculation | Value |
|---|---|---|
| Value of Gift | € 0.00 | |
| Basic Gift Threshold | € 3,000.00 | |
| Relationship Treshold (B) | 32,500.00+3,000.00 | € 35,500.00 |
| Taxable amount | - | € 0.00 |
| Tax due | x 33% | € 0.00 |
| Net | - | € 0.00 |
What is CAT?
CAT (Capital acquisitions Tax) is a form of tax that applies to gifts (and inheritances) passed from one individual to another. Depending on your relationship to the gift giver, you will have different tax thresholds. The threshold of tax-free allowance depends on your relationship to the person giving the gift.
Any gifts or inheritances above the thresholds listed below are subject to CAT tax at a rate of 33%.
CAT Thresholds:
Group A: The Group A threshold applies where the beneficiary is a child of the person giving the gift. The threshold is for Group A is €335,000. This is a lifetime threshold and represents a cumulative threshold from both parents.
Group B: The Group B threshold applies where the beneficiary is a lineal ancestor, this includes: parents, siblings, nephews/nieces, grandparent or a grandchild. The threshold for this grouping is €32,500. This is a lifetime threshold and represents a cumulative threshold from all family members in Group B.
Group C: The group C threshold applies to any beneficiary who is not in Group A or Group B above. The threshold for this grouping is €16,250. This is a lifetime threshold and represents a cumulative threshold of all individuals in Group C.
Annual Small Gift Exemption: In addition to the thresholds above, an annual allowance of €3,000 per year is allowed to be received without incurring any tax.
How does the CAT Calculator work?
The CAT calculator works by taking 2 inputs. First it takes the value of the gift being given and then it takes the relationship between the gifter and the receiver – this determines the tax threshold applicable to the gift.
So the calculation looks like:
Taxable amount = Gift amount – small gift exemption (€3,000) – relationship threshold (€16,250 – €335,000)
