A Capital Acquisitions Tax threshold is not a fresh allowance for every inheritance. It relates to a group of relationships, and earlier taxable benefits within that group can reduce the amount available. Understanding that point is often more important than memorising the headline figure.
Revenue lists the thresholds for benefits arising on or after 7 October 2026 as €420,000 for Group A, €44,000 for Group B and €22,000 for Group C. Earlier benefits can fall under earlier thresholds, so the relevant date must be established before calculating tax.
Identify the relationship group
Group A commonly applies to benefits from a parent to a child, although the legislation includes other qualifying situations. Group B covers certain relatives, while Group C generally applies where neither A nor B is available.
The details matter. Adoption, stepchildren, foster relationships and particular parent-child inheritances can require a closer look. Use Revenue's group guidance rather than deciding solely from an everyday description such as “close family”.
Bring earlier benefits into the picture
For aggregation, relevant taxable gifts and inheritances received since 5 December 1991 in the same group are taken into account. The benefits may come from different people within that group. It is not simply a separate allowance from each parent or each relative.
For example, an earlier taxable gift from one parent can affect the threshold available against a later inheritance from the other. The calculation should also distinguish exempt amounts from amounts that use the threshold.
Keep the dates and records clear
Write down the provider, relationship, date and taxable value of each significant earlier benefit. Keep the supporting paperwork rather than relying on a remembered bank transfer. If tax was paid previously, retain the return and calculation too.
The threshold in force at the date of the gift or inheritance is relevant. That date is distinct from the valuation date used for other CAT purposes, including filing and payment timing.
When making your will, avoid assuming that equal gifts necessarily produce equal after-tax outcomes. A beneficiary's previous history may be different from another's.
These figures are checked against Revenue as at 13 October 2026. Before acting, confirm the current rules and seek advice if the relationship classification or earlier benefits are uncertain.
Sources and further reading
General information, not advice on your individual circumstances. Laws and tax rules can change; check the linked official guidance and obtain professional advice where needed.