CAT Guide · 2026
CAT Inheritance Tax Ireland 2026: Group Thresholds & Reliefs Explained
Capital Acquisitions Tax (CAT) at 33% applies to gifts and inheritances above certain tax-free thresholds. The threshold depends on your relationship to the person giving you the gift or inheritance — with Group A (parent to child) at €400,000 and Group C (non-relatives) at just €20,000. Use our CAT Calculator to estimate your tax.
CAT Group Thresholds 2026
The tax-free threshold depends on your relationship to the disponer (the person giving the gift or leaving the inheritance). These are lifetime limits.
| Group | Relationship | Threshold | Tax on €100k Gift |
|---|---|---|---|
| A | Parent → Child (incl. stepchild, foster child) | €400,000 | €0 |
| B | Grandparent, sibling, aunt/uncle → niece/nephew | €40,000 | €19,800 |
| C | All other relationships (friends, cousins, etc.) | €20,000 | €26,400 |
* Thresholds are lifetime limits — they apply to the cumulative total of all gifts/inheritances received from the same group.
Real Examples
Parent → Child (Group A)
Grandparent → Grandchild (Group B)
Uncle → Niece (Group C)
Sibling → Sibling (Group B)
Lifetime Limits Are Cumulative
The group thresholds are not per-gift — they apply to the total of all gifts and inheritances you receive from people in that group over your entire lifetime.
⚠️ Example: Tracking Group B
Over 10 years, you receive gifts from your grandmother:
| Year | Gift | Cumulative | Group B Remaining |
|---|---|---|---|
| 2021 | €10,000 | €10,000 | €30,000 |
| 2024 | €15,000 | €25,000 | €15,000 |
| 2026 | €25,000 | €50,000 | €10,000 over (CAT due) |
Key CAT Reliefs
🏠 Dwelling House Exemption
If you inherit a family home and live in it as your main residence for at least 6 years (and have no other residential property), the home may be exempt from CAT. Conditions apply including age limits and clawback provisions if you sell within 6 years.
🌾 Agricultural Relief (90% Reduction)
Agricultural property (farmland, buildings, stock) can be valued at just 10% of market value for CAT purposes — a 90% reduction. The beneficiary must be a "farmer" (at least 25% of gross assets from farming) and must retain the property for 6 years.
🏢 Business Relief (90% Reduction)
Qualifying business property (sole trader/partnership assets, shares in private companies) can be valued at 10% of market value for CAT. The beneficiary must retain the property for 6 years and be a qualifying business owner/employee.
🎁 Small Gift Exemption (€3,000/year)
You can receive up to €3,000 per year from any one person completely tax-free. This is an annual exemption — any gift over €3,000 in a year uses up your group threshold. Married parents can give €6,000 combined to a child each year.
💰 Favourite Niece/Nephew Relief
A niece or nephew who works in the deceased's business (unpaid or underpaid) for at least 5 years before death may qualify for reduced CAT. The relief is based on the value of the business assets.
How to Pay CAT
File an IT38 Return
A CAT return (IT38) must be filed within 4 months of the valuation date (usually the date of the gift or inheritance). You file through Revenue's myAccount or ROS system.
Pay the Tax
CAT is due within 4 months of the valuation date. If you pay late, interest accrues at 0.032% per day (11.68% APR). Revenue offers installment arrangements for inheritance of certain assets.
Favourite Reliefs First
Apply reliefs (Agricultural, Business, Dwelling House) before calculating the final CAT bill. Revenue's online system guides you through the relief application process.