Practical guide · stated assumptions and checkable examples
Irish CAT: aggregate relevant benefits before using the threshold
Published · Sources checked
Source and worked-example review; not professional advice or approval. Examples are synthetic unless explicitly identified otherwise. Follow the cited authority for current eligibility and legal requirements.
A gift or inheritance cannot always be assessed in isolation from earlier benefits. A transparent CAT worksheet needs the applicable relationship group and the relevant prior aggregation, not just the value of the newest transfer.
Use the applicable group and valuation facts
The reviewed Irish CAT thresholds are €400,000 for Group A, €40,000 for Group B and €20,000 for Group C, applying from October 2, 2024. The relevant group depends on the relationship and legal conditions. The reviewed standard CAT rate is 33%. This guide does not determine the valuation date, relationship classification, residence or relief eligibility.
References: Revenue Ireland — CAT thresholds and aggregation; Revenue Ireland — CAT rates
A current benefit crossing the threshold
Assume a properly classified Group A current taxable benefit of €30,000, relevant prior taxable benefits of €390,000 and no other relief or exemption. The aggregate becomes €420,000, exceeding the €400,000 threshold by €20,000. At 33%, the modeled tax associated with the current benefit is €6,600.
Calculation: Current incremental taxable excess = max(0, prior + current − threshold) − max(0, prior − threshold)
Do not charge the prior excess again
Change the synthetic prior amount to €410,000 while leaving the current benefit at €30,000. The total excess is €40,000, but €10,000 was already above the threshold before the current benefit. The incremental excess is therefore €30,000, producing €9,900 at the assumed 33% rate. Multiplying the whole €40,000 by 33% and presenting it as the new benefit’s tax would include the prior excess again.
Aggregation needs the right history
Revenue’s aggregation rules refer to relevant prior benefits within the applicable framework, including benefits on or after December 5, 1991. Do not include every transfer indiscriminately or assume that all transfers from all relationships consume the same threshold. Keep a dated schedule showing the classification and treatment of each relevant prior benefit. Relief and exemption questions require their own evidence.
References: Revenue Ireland — CAT thresholds and aggregation
Separate a planning result from a filing conclusion
The formula is a check on an entered taxable-benefit scenario, not a decision that a transfer is taxable, that a relief applies or that a filing is unnecessary. Valuation, territorial scope, dates, special relationships and prior treatment can affect the outcome. Preserve the source date and the facts supplied to the worksheet, then verify the complete position before acting.
Questions about this guide
Is the threshold a fresh allowance for each gift?
No. Relevant prior benefits can consume the applicable group threshold. The calculation needs the correct aggregation history.
Does the calculator automatically identify Group A, B or C?
No. The user must establish the correct group and taxable benefit. The worksheet does not verify family relationships or legal eligibility.
Primary sources and reference dates
- Revenue Ireland — CAT thresholds and aggregation — checked .
- Revenue Ireland — CAT rates — checked .