Inheritance Tax Advice Ireland

If you receive a gift in Ireland it may be liable to gift tax. If you receive an inheritance in Ireland it may also be liable to inheritance tax. Both gift and inheritance tax fall under the umbrella of Capital Acquisitions Tax.

As detailed below thresholds, exemptions and tax reliefs do apply so it is important to always seek the advice of a tax professional.

Contact Greavy & Co Accountants & Tax Advisors on (01) 604 0011 to speak with a tax professional now.

capital acquisitions tax ireland

What is inheritance tax?

Inheritance tax is levied on the assets of someone who has died. The tax applies where money or other assets – including residential property such as the family homes – are passed on to a beneficiary, either via a will, via intestacy (where someone has died without making a will), or by the surviving owners of jointly-owned assets. The tax payable by the person receiving the benefit is charged at a rate of 33% on the remainder of all income received above the recipient’s tax-free threshold amount.

Inheritance tax in Ireland is grouped alongside gift tax as a category of capital acquisition tax. The tax applies to any assets that are located within Ireland, and also in cases where the property is located outside Ireland but either the deceased person or the beneficiary is resident or ordinarily resident in Ireland for tax purposes.

Who needs to pay inheritance tax?

Irish inheritance tax is payable by the person who receives the inheritance. For the beneficiaries of the estate of a deceased person, they will become liable for inheritance tax if they receive sums in excess of the threshold amount.

Inheritance and capital acquisitions tax exemptions in Ireland

Any inheritance between spouses or civil partners is completely exempt from capital acquisitions and inheritance tax liabilities, regardless of the total value.

For all other beneficiaries, exemptions may apply in specific circumstances. These exemptions, including the tax-free allowance of individuals, will depend on the recipient’s relationship to the deceased person. The highest allowance is available to Group A beneficiaries and applies where the beneficiary is a child (including adopted children, step-children, and certain foster children) of the deceased, or a minor grandchild of the deceased if their parent is no longer alive.

<h3 “irish_inheritance_tax_deadlines”>Irish Inheritance Tax Deadlines

For all inheritances with valuation dates within the twelve months ending 31 August, any applicable inheritance tax bills must be paid by 31 October of the same year. This means that you will have about 14 months to pay tax on inheritance valued on 1 September, but only two months to pay tax on inheritance valued just one day earlier.

How can I submit a return?

Inheritance tax is declared as part of tax self assessment returns. For inheritance received on or after 14 June 2010, the return must be filed online via the ROS (Revenue’s online service). Alternatively, a tax advisor or accountant can assist in filing your return.

Where can I get a form?

Form IT38 – Gifts/Inheritance Tax Self-Assessment Return is available from the, or via your accountant.