Can a grandchild inherit 40k tax free from both their grandfather and then subsequently from their grandmother?

F

fionawalsh@outl

New Member
Messages
2
Hello all :)

Can a grandchild inherit 40k tax free from both their grandfather and then subsequently from their grandmother?

Thank you
Fiona
 
No. Once the group B tax exemption threshold of €40K is hit then any further group B inheritance is assessable for CAT as usual. The group ABC exemption thresholds are lifetime cumulative amounts and not per donor/inheritance. In your example the first €40K would be exempt (assuming no prior group B inheritances) and the second €40K would be taxed.

CAT groups and group thresholds

This page explains thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax
www.revenue.ie www.revenue.ie
 
If you inherit money from somebody from Group C category, does that reduce your amount from Group A?
Or can you inherit up to that threshold for each group?
 
AndroidMan said:
If you inherit money from somebody from Group C category, does that reduce your amount from Group A?
Click to expand...
No
Or can you inherit up to that threshold for each group?
Click to expand...
Yes.

CAT groups and group thresholds

This page explains thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax
www.revenue.ie www.revenue.ie
Group thresholds

Each group has a tax-free threshold amount. The threshold is cumulative and applies to the total taxable benefits you have received in that group. (You must include the taxable value of any previous gifts and inheritances received since 5 December 1991 in the same group.)

You only pay tax on the value of a gift or inheritance above the tax-free group threshold amount.
Click to expand...
 
You must log in or register to reply here.
Back
Top