Ireland Inheritance tax/gift tax

Capital Acquisitions Tax (CAT):

• CAT applies to gifts and inheritances.  
• It is a tax on the recipient of the gift or inheritance, not the estate.

Taxable Events:

• Gifts received during a person's lifetime are taxable.
• Inheritances received upon a person's death are taxable.

Taxable Persons:

• Any person receiving a gift or inheritance of Irish property is liable for CAT.
• Any person who is resident or ordinarily resident in Ireland, who receives a gift or inheritance of any property anywhere in the world, is liable for CAT.

Tax Rates:

• The current CAT rate is 33%.  
• This rate applies to the taxable value of the gift or inheritance.

Tax-Free Thresholds:

• Certain tax-free thresholds apply to gifts and inheritances.  
• These thresholds depend on the relationship between the giver and the recipient.  
• There are three different group thresholds.
• Group A, typically between parents and children.
• Group B, typically between siblings, nephews, nieces, and grandchildren.
• Group C, typically between other people.

Aggregation:

• Gifts and inheritances received from the same giver or from different givers within the same group threshold are aggregated.  
• This aggregation affects the application of the tax-free thresholds.

Exemptions:

• Certain exemptions may apply, such as:
• Gifts and inheritances between spouses or civil partners.  
• The family home, under specific circumstances.
• Certain heritage property.

Tax Residency:

• Tax residency of the recipient affects their CAT liability.  
• Non-resident recipients may be liable for CAT on Irish property.

Valuation:

• The value of the gift or inheritance is determined as of the valuation date.  
• Specific valuation rules apply to different types of assets.

Tax Returns:

• Recipients of taxable gifts or inheritances must file a CAT tax return.  
• Returns must be filed within specified timeframes.  

Revenue Commissioners:

• The Revenue Commissioners administer CAT.

Important Note:

• The rules surrounding CAT can become complicated very quickly, professional advice is recommended.

Ireland Stamp Duty

Property Transactions:

• Stamp duty is primarily levied on the transfer of property, both residential and commercial.
• This includes the purchase or lease of land and buildings.

Share Transfers:

• Stamp duty is also applicable to the transfer of shares in Irish incorporated companies.
• Specific rules apply to the transfer of shares in unlisted companies.

Stamp Duty Rates:

• Stamp duty rates vary depending on the type of property and its value.
• Residential property rates are progressive, with higher rates applicable to higher-value properties.
• Commercial property rates are also value-dependent.
• Shares in companies attract a 1% stamp duty.
• Instruments Liable to Stamp Duty:
• Stamp duty is payable on instruments that transfer property or shares.
• This includes deeds of conveyance, leases, and share transfer forms.

Electronic Stamping:

• The Revenue Commissioners provide an electronic stamping system.
• This system facilitates the payment and stamping of instruments.

Exemptions and Reliefs:

• Certain transactions may be exempt from stamp duty.
• Specific reliefs may be available for certain types of property transfers, such as transfers between related parties.
• There are also reliefs available for certain types of company restructurings.

Non-Resident Purchasers:

• Non-resident purchasers of Irish property are subject to the same stamp duty rates as resident purchasers.
• There are no specific additional stamp duty charges for foreign investors.

Leases:

• Stamp duty is applicable to leases of property. The rate of stamp duty is dependent on the length of the lease, and the annual rent.