Glossary · Tax

IT38 return: plain-English guide for Irish probate

The Revenue return a beneficiary files when their gift or inheritance takes them above 80% of the applicable CAT group threshold.

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

What it means, in plain English

The IT38 is the Revenue return each beneficiary files when their cumulative gifts and inheritances from a CAT group reach 80% of the group threshold. The beneficiary files it themselves through Revenue myAccount, separately from the executor's SA2 filing. The deadline depends on the month of the valuation date.

IT38 return in Irish probate practice

The 80% filing trigger is a practical rule that catches beneficiaries whose running total is approaching their group threshold. In 2026, the filing triggers are €320,000 for Group A, €32,000 for Group B, and €16,000 for Group C. Once the beneficiary crosses that figure in their lifetime aggregate, they must file an IT38, even if no tax is actually owed. The filing itself sets out the current benefit, every prior benefit from the same group, any reliefs claimed, and the CAT calculation. If tax is owed, it is paid with the return. The 31 October deadline works as follows: for valuation dates in January to August of a given year, the filing and payment are due on 31 October of that same year. For valuation dates in September to December, they are due on 31 October of the following year. Late filing triggers a surcharge of 5% within two months and 10% after, plus daily interest at roughly 0.0219%. A beneficiary who crosses the 80% threshold and fails to file is at risk of these penalties even if no tax was actually due.

Worked example

Caoimhe receives a €50,000 inheritance from her aunt in July 2026. That is her second Group B benefit: she received €25,000 from another aunt in 2015. Her Group B running total is now €75,000, which is well above the 80% filing trigger of €32,000. She files the IT38 by 31 October 2026. The calculation shows €75,000 minus the €40,000 Group B threshold leaves €35,000 taxable, and CAT at 33% is €11,550. She pays the €11,550 with the return.

The statutory position

Sections 45 to 47 of the Capital Acquisitions Tax Consolidation Act 2003 cover the IT38 return. Section 51 covers interest on late payment. Revenue's published IT38 guidance sets out the current filing mechanism through myAccount and the surcharge schedule.

Related terms in this glossary

  • CAT (Capital Acquisitions Tax): The Irish tax on gifts and inheritances, charged at 33% on the value of a beneficiary's inheritance above their applicable group threshold.
  • 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.
  • Revenue clearance (Section 49 CATCA): A formal Revenue letter confirming that all CAT and income tax obligations of the deceased and the estate have been settled, generally requested by the executor before final distribution.
  • 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 IT38 return

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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.