Inheritance Tax in Ireland — CAT Guide 2026

Inheritance tax in Ireland is formally called Capital Acquisitions Tax (CAT) and is charged at a flat rate of 33% on the taxable value of inheritances above certain lifetime thresholds. Understanding CAT is essential for any Irish family with significant assets.

CAT Thresholds 2026

Each beneficiary has a lifetime tax-free threshold based on their relationship to the person who gave the gift or inheritance:

• Group A — €335,000: Applies to inheritances from a parent to a child. Also applies to a grandchild inheriting from a grandparent if the relevant child (parent of the grandchild) is deceased at the time of inheritance.
• Group B — €32,500: Applies to inheritances from grandparents, siblings, aunts, uncles, nieces, and nephews.
• Group C — €16,250: Applies to all other inheritances — cousins, friends, unmarried partners, strangers.

These thresholds are lifetime cumulative — all gifts and inheritances received from 5 December 1991 from the same group are added together and measured against the threshold.

Key CAT Exemptions

Spouse / Civil Partner Exemption

All transfers between spouses and civil partners are completely exempt from CAT. This is the most important exemption in Irish tax law.

Dwelling House Exemption

A beneficiary who has lived in the inherited home as their sole residence for 3 years before the inheritance, and does not own another home at the time, can inherit the property tax-free. This exemption is crucial for Cork families with valuable properties.

Agricultural Relief

90% relief on the value of qualifying agricultural property (land, buildings, livestock, machinery) for qualifying farmers. Reduces the effective CAT rate to 3.3%.

Business Relief

90% relief on qualifying business assets and shares in unquoted private companies. Same conditions and restrictions as Agricultural Relief.

Small Gift Exemption

The first €3,000 received per year from any one person is exempt from CAT (and does not count against the lifetime threshold). A powerful ongoing planning tool.

Favourite Nephew/Niece Relief

A niece or nephew who has worked substantially full-time in the deceased's business for 5 years qualifies for the same Group A threshold as a child — €335,000.

How and When Is CAT Paid?

CAT is assessed on a self-assessment basis. Returns must be filed and tax paid by 31 October of the year following the year in which the inheritance is received (e.g., inherit in 2025 → CAT due by 31 October 2026). Revenue has powers of enforcement for late payment, and interest accrues from the due date.

CAT Planning Strategies

• Annual gifting using the €3,000 small gift exemption
• Section 72 life insurance to fund the CAT bill tax-free
• Lifetime transfers to use thresholds early
• Structuring assets to qualify for Agricultural or Business Relief
• Using deeds of variation post-death to redirect inheritances optimally

Get CAT Advice for Your Cork Estate

Estate planning with a Cork solicitor can legally minimise your family's CAT exposure. See: Estate Planning Cork | Inheritance Tax Cork — Detailed Guide.