Dáil Éireann Debate, Wednesday - 22 January 2025
340. Deputy Niall Collins asked the Minister for Finance to detail the inheritance tax thresholds for 2025 and any planned changes to same in subsequent years; and if he will make a statement on the matter. [1397/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
You should be aware that there would be a significant cost in making further substantial changes to the CAT thresholds. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
