Glossary · Tax

CAT (Capital Acquisitions Tax): plain-English guide for Irish probate

The Irish tax on gifts and inheritances, charged at 33% on the value of a beneficiary's inheritance above their applicable group threshold.

Updated April 2026. Plain-English guide for Irish executors, administrators, and beneficiaries.

What it means, in plain English

CAT is the Irish tax on gifts and inheritances, charged at 33% on the value a beneficiary receives above their applicable group threshold. The threshold depends on the relationship between the beneficiary and the person who gave the gift or died. In 2026, the thresholds are Group A €400,000 (parent to child), Group B €40,000 (sibling, niece, nephew, grandchild aged 18 or over), and Group C €20,000 (everyone else).

CAT (Capital Acquisitions Tax) in Irish probate practice

CAT is a beneficiary tax, not an estate tax: each beneficiary is responsible for their own return and their own payment. The threshold is a lifetime figure, not an annual one. Every taxable gift or inheritance the beneficiary has received from anyone in the same group since 5 December 1991 is added together, and the group threshold is tested against the running total. Once the threshold is crossed, the excess is taxed at 33%. Certain reliefs can reduce or eliminate the liability: Dwelling House Exemption on the family home, Agricultural Relief at 90% on qualifying farms, Business Relief at 90% on qualifying businesses, Favourite Nephew or Niece Relief on farming and business assets. Exemptions include transfers between spouses or civil partners (fully exempt), the Small Gift Exemption of €3,000 per donor per year, and gifts or inheritances for the education or support of a child. CAT is filed on the IT38 return by the beneficiary, with a 31 October deadline that depends on the month of the valuation date.

Worked example

Saoirse inherits €600,000 from her father. She has received no other taxable gifts from her parents in her lifetime. The Group A threshold of €400,000 applies. The taxable amount is €200,000 (€600,000 minus €400,000), and CAT at 33% is €66,000. Saoirse files the IT38 herself on Revenue myAccount by 31 October, and pays the CAT directly to Revenue. If her father also gave her €50,000 in 2010 as a taxable gift, that earlier figure would be added to the current inheritance, reducing the threshold headroom to €350,000 and increasing the CAT owed.

The statutory position

The Capital Acquisitions Tax Consolidation Act 2003 governs CAT. Part 5 sets the thresholds, rates, and aggregation rules. Section 2 covers the valuation date. Section 49 covers Revenue clearance. The 33% rate has applied since Budget 2012. The Group A threshold was raised to €400,000 by Finance (No. 2) Act 2024, effective for inheritances from 2 October 2024.

Related terms in this glossary

  • Valuation date: The specific date CAT uses to fix the value of an inherited asset; usually the date of the Grant of Probate, but subject to specific rules for different asset types.
  • Aggregation: The rule that every taxable gift or inheritance from the same CAT group since 5 December 1991 is added together before the group threshold is applied.
  • Small Gift Exemption: An annual CAT exemption of €3,000 per donor per beneficiary, usable every calendar year without eroding the lifetime group threshold.
  • IT38 return: The Revenue return a beneficiary files when their gift or inheritance takes them above 80% of the applicable CAT group threshold.
  • Section 72 policy: A life insurance policy taken out specifically to fund the beneficiary's CAT liability, set up so that the payout is exempt from CAT itself under Section 72 of the CATCA 2003.

Related reading

How ProbatePack handles CAT (Capital Acquisitions Tax)

Everything in the Preparation Pack plus the full inheritance-tax layer. CAT calculator for each beneficiary, individual IT38 drafts, Dwelling House Exemption assessment, Section 72 check, Agricultural and Business Relief assessments where applicable, and the Revenue clearance letter. For estates that will cross the Group A threshold.

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This glossary entry is general preparation guidance, not legal or tax advice. For complex estates, contested wills, or situations involving significant tax structuring, consult a solicitor or tax adviser.