Inheritance Tax in Cork — CAT Planning Guide Ireland

Inheritance tax in Ireland is called Capital Acquisitions Tax (CAT) and is charged at a rate of 33% on inheritances above certain threshold amounts. For Cork families with property and savings, CAT can result in substantial tax bills — but with proper planning, much of this liability can be legally reduced or eliminated.

CAT Thresholds 2026

Each beneficiary has a lifetime tax-free threshold depending on their relationship to the person who died:

• Group A — €335,000 — from parent to child (or grandchild if parent is deceased)
• Group B — €32,500 — from grandparent, sibling, aunt, uncle, or niece/nephew
• Group C — €16,250 — from anyone else (strangers, friends, cousins)

These are lifetime thresholds. Previous gifts and inheritances received since 5 December 1991 are aggregated and count against the threshold.

Who Pays Inheritance Tax in Ireland?

The beneficiary pays CAT, not the estate. The executor may be required to ensure CAT is paid before distributing the estate. CAT returns must be filed and tax paid by 31 October of the year following the inheritance (under self-assessment).

Key CAT Exemptions and Reliefs

Spouse / Civil Partner Exemption

Inheritances between spouses and civil partners are fully exempt from CAT. This is one of the most significant exemptions in Irish tax law.

Dwelling House Exemption

A beneficiary who has lived in the family home as their main residence for the three years before inheritance, and does not own another home, can inherit the property CAT-free. This is extremely valuable for Cork families with high property values.

Agricultural Relief

Qualifying farmers inheriting agricultural property (land, farm buildings, livestock, machinery) can receive 90% relief on the taxable value, reducing the effective CAT rate from 33% to 3.3%. See: Agricultural Relief Ireland.

Business Relief

Qualifying business assets (shares in private companies, business property) qualify for 90% relief. See: Business Relief Ireland.

Small Gift Exemption

Each person can receive gifts of up to €3,000 per year from any one donor free of CAT. This exemption does not use up the lifetime threshold and is one of the most effective ongoing planning tools.

Planning Strategies to Reduce CAT in Cork

• Annual gifting: Use the €3,000 small gift exemption every year for each child and grandchild
• Section 72 life insurance: A specially structured life insurance policy exempt from CAT that pays the beneficiary's tax bill
• Structured transfers: Transferring assets during your lifetime to use thresholds efficiently
• Agricultural and business reliefs: Structuring farm and business assets to qualify for 90% relief
• Deed of variation: After death, beneficiaries can redirect inheritances to reduce overall family tax burden

CAT and the Cork Family Home

With Cork property values, many family homes now exceed the Group A threshold of €335,000. If a child who does not live in the family home inherits it, they may face a significant CAT bill. Planning with a Cork estate solicitor can help structure ownership to minimise this exposure.

Get Expert CAT Advice in Cork

Cork solicitors specialising in estate planning regularly work alongside tax advisers and accountants to develop comprehensive plans. Contact a Cork solicitor today to assess your family's inheritance tax position.

• Estate Planning Cork
• Inheritance Tax Ireland — Full Guide
• CAT Thresholds Ireland 2026