inheritance tax threshold when two siblings inherit a house

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yaloua

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If two siblings were to inherit a house valued at 860,000 euros. Can each person inherit 400,000 euro as their own separate threshold?

For example:

Sibling A inherits half @ 430,000. The threshold of 400,000 applies and he pays 33% tax of the remaining 30,000 euros?.
 
yaloua said:
From their father
Click to expand...
Presumably, in this case, the beneficiaries never previously received any CAT group A inheritance(s) - e.g. from another parent - and their full €400K exemption threshold is still available to them?

CAT groups and group thresholds

This page explains thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax
www.revenue.ie www.revenue.ie
 
Last edited:
yaloua said:
If two siblings were to inherit a house valued at 860,000 euros. Can each person inherit 400,000 euro as their own separate threshold?

For example:

Sibling A inherits half @ 430,000. The threshold of 400,000 applies and he pays 33% tax of the remaining 30,000 euros?.
Click to expand...
That;s how it works. If you inherit (or receive a gift of) a 50% share in an asset, the value of the inheritance or gift is 50% of the value of the asset, and CAT is calculated on the value of the inheritance or gift.

Take a slightly more complex (and not very realistic) example in which A leaves a house worth €860,000 to his daughter B and his niece C. Neither B nor C have every received any gifts or inheritances before. No special reliefs are avaiable based on facts not stated.

B gets an inheritance of €430,000, offsets her €400k allowance and pays CAT on €30k.

C gets an inheritance of €430,000, offsets her €40k allowance and pays CAT on €390k.
 
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