New Thresholds for CAT for 2005

Brendan Burgess

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For the purpose of Gift and Inheritance Tax, the relationship between the person who provided the gift or inheritance (i.e. the disponer) and the person who received the gift or inheritance (i.e. the beneficiary), determines the maximum tax free threshold - known as the "group threshold". Three Group thresholds were introduced on 1 December 1999 in respect of gifts and inheritances taken between 1 December 1999 and 31 December 2000. The Group thresholds are indexed by reference to the Consumer Price Index and the indexation factor for 2005 (1 January 2004 to 31 December 2004 inclusive) is 1.225.

The indexed Group thresholds for 2003, 2004 and 2005 are set out in the table below.



Group Relationship to Disponer Group Threshold
2003(after indexation) 2004(after indexation) 2005(after indexation)
A Son/Daughter €441,198 €456,438 €466,725
B Parent*/Brother/Sister/

Niece/Nephew/

Grandchild
€44,120 €45,644 €46,673
C Relationship other that Group A or B €22,060 €22,822 €23,336



















Further information may be obtained from Capital Taxes Division, Taxpayer Information Service, Dublin Castle - telephone Locall: 1890 20 11 04

* In certain circumstances a parent taking an inheritance from a child can qualify for the Group A threshold.
 
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