Inheritance Tax/Capital Acquisitions Tax

This Tax is payable on assets paid from one to another (except those assets left to the surviving spouse).

Commonly known as “Death Tax”, it is due at Inheritance.

Generally applies to children inheriting Parents’ estate.

Now a major issue as a result of the number of cohabiting couples in Ireland.

  • Property Prices are increasing
  • Tax free threshold for non-married couple is only €16,250
  • Threshold for children is €310,000
  • Inheritance Tax is now 33% (20% in 2008)

E.G. Unmarried couple save for a home together and purchase and repay mortgage together. The home is valued at €300,000 and is covered by Mortgage Protection plan, paid for by both. One dies and other is deemed to inherit 50% of value of home, €150,000. €16,250 is inherited free of tax and surplus is taxed at 33% so tax due is €44,137.50.

E.G. Married couple have 2 children. Their home is valued at €900,000, they have cash €100,000. There is no tax due on spouse inheritance, but on 2nd death the children would inherit a value of €500,000 each. Tax due is €62,700 each. There is only €100,000 cash available. Solution is to commence a policy which is written in trust to pay tax when due.

If you are in this position, review your assets with us and we can calculate the potential Tax. There is a solution, a policy may be taken out, which will cover the calculated tax amount.

Even if you have a current policy, for this purpose, it is important to ensure it is up to date with Tax Laws.

  • Click to see rates
    Inheritance Tax or CAT
    Joint Life, 2nd Death basis
    Ages Sum Assured Premium
    50 62,700 59.44
    55 62,700 65.10
    60 62,700 84.46
    65 62,700 116.96
    70 62,700 154.78
    Both Lives, non smokers