If you’ve received a gift or inheritance, you may have a Capital Acquisitions Tax (CAT) obligation approaching.

In Ireland, CAT applies to certain gifts and inheritances, including money, property and business assets. The current tax rate is 33% on the taxable amount exceeding the relevant tax-free threshold.

With the 2026 CAT filing deadline approaching, here’s what you need to know.

What Are the CAT Thresholds for 2026?

Budget 2027 introduced increased CAT thresholds for gifts and inheritances taken on or after 7 October 2026.

• Group A: Children receiving gifts or inheritances from parents and certain other qualifying relationships. Tax-free threshold: €420,000.
• Group B: Siblings, nieces, nephews and certain other relatives. Tax-free threshold: €44,000.
• Group C: Other relationships, including friends. Tax-free threshold: €22,000.

For gifts and inheritances taken between 2 October 2024 and 6 October 2026, the previous thresholds of €400,000, €40,000 and €20,000 apply.

Previous taxable gifts and inheritances received within the same group since 5 December 1991 must generally be considered when calculating the available threshold.

When Is the CAT Deadline?

The filing and payment deadline depends on the valuation date of the gift or inheritance.

• 1 September 2025 to 31 August 2026: File and pay by 31 October 2026.
• 1 September 2026 to 31 August 2027: File and pay by 31 October 2027.

For 2026, Revenue has extended the deadline to 18 November 2026 for qualifying taxpayers who both file their CAT return and make the required payment through Revenue Online Service (ROS).

You must generally submit a CAT return (Form IT38) when the combined taxable value of gifts and inheritances received within the same group exceeds 80% of the applicable tax-free threshold, even if no tax is payable.

Are There Any Exemptions or Reliefs?

Several exemptions and reliefs may reduce your CAT liability, including:

• Small Gift Exemption: Receive gifts of up to €3,000 per year from each person without CAT.
• Business Relief: A 90% reduction in the taxable value of qualifying business assets, subject to conditions.
• Agricultural Relief: A 90% reduction in the taxable value of qualifying agricultural property, subject to conditions.
• Spouse or Civil Partner Exemption: Gifts and inheritances between spouses or civil partners are generally exempt.

A CAT return must be submitted when claiming Business Relief or Agricultural Relief, even if the benefit falls below the usual 80% filing threshold.

For business owners, CAT is particularly important when planning succession or transferring shares and business assets to family members.

How Gallagher Keane Can Help

Understanding CAT thresholds, reliefs and filing requirements is important when receiving an inheritance, making significant gifts or planning business succession.

At Gallagher Keane, we support individuals and business owners with tax planning, compliance and succession planning.

If you have questions about your CAT obligations or an upcoming transfer of assets, contact our team at info@gallagherkeane.ie.