CAT & CGT Tax Planning in Ireland: 2026 Guide

A little planning can save your family a large tax bill. In Ireland, gifts and inheritances are taxed under Capital Acquisitions Tax (CAT), while profits on selling or transferring assets are taxed under Capital Gains Tax (CGT). Both are charged at 33%, so the difference between planning ahead and doing nothing can run to tens of thousands of euro. This 2026 guide explains the current thresholds, the main reliefs, and practical steps to pass on wealth tax-efficiently. For the detailed mechanics of inheritance tax, see our companion guide to Inheritance Tax (CAT).

CAT: the 2026 thresholds you need to know

CAT is paid by the person receiving a gift or inheritance, on the value above a tax-free threshold that depends on your relationship to the person giving it. Budget 2026 made no changes to the thresholds, so for 2026 they are:

• Group A — €400,000: a child inheriting from a parent (and some other close cases).
• Group B — €40,000: a brother, sister, niece, nephew, grandchild or grandparent.
• Group C — €20,000: everyone else, including friends and cousins.

These are lifetime cumulative thresholds: all gifts and inheritances you have received within the same group since 5 December 1991 count towards the limit. Once you exceed your threshold, the balance is taxed at 33%.

The small gift exemption — the simplest planning tool

Everyone can receive up to €3,000 per year from any one person completely free of CAT under the small gift exemption. It does not touch your lifetime threshold. Used consistently — for example, both parents gifting €3,000 each to a child every year — this can transfer significant sums over time without any tax and without eroding the Group A threshold.

Capital Gains Tax on gifts and transfers

CGT can arise when you transfer an asset such as property or shares, even as a gift, because you are treated as disposing of it at market value. CGT is charged at 33% on the gain, and each person has an annual exemption of €1,270. Importantly, the same transfer can trigger both CGT for the giver and CAT for the recipient — but Ireland allows a same-event credit, so CGT paid on a gift can generally be offset against the CAT due on the same event, avoiding double taxation.

Key reliefs that reduce the bill

Dwelling House Exemption

An inherited home can pass entirely free of CAT where strict conditions are met — broadly, the person inheriting has lived in the house as their only or main home for the three years before the inheritance, does not own another dwelling, and continues to live there for six years afterwards.

Agricultural and Business Relief

Qualifying agricultural property and qualifying business assets can benefit from a 90% reduction in taxable value, provided the conditions (including the “farmer test” for agricultural relief and ownership/activity conditions for business relief) are satisfied. These reliefs are powerful but technical, and clawbacks apply if conditions are later broken.

Retirement Relief

Business owners and farmers passing on their business or land may be able to reduce or eliminate CGT under retirement relief, subject to age and value conditions.

Practical steps for tax-efficient planning

Sensible planning usually combines several tools: use the small gift exemption every year; make a clear, up-to-date will; consider the timing and structure of transfers; and check whether agricultural, business or dwelling-house reliefs apply before assets change hands. Because reliefs have detailed conditions and clawbacks, tailored advice almost always pays for itself. Explore our CAT gift & inheritance planning consultation and our Capital Gains Tax planning consultation, or browse our full Tax Planning service range.

Frequently asked questions

Who pays CAT — the giver or the receiver?

The person who receives the gift or inheritance is liable for CAT, on the value above their relevant group threshold.

Can one transaction be hit by both CAT and CGT?

Yes, a single gift can trigger CGT for the giver and CAT for the recipient. However, the same-event credit generally allows the CGT paid to be set against the CAT on the same event, so the same value is not taxed twice.

Did Budget 2026 change the thresholds?

No. Budget 2026 left the CAT thresholds and the 33% rate unchanged, so the Group A, B and C figures above continue to apply.

Plan ahead

The Irish tax code rewards those who plan early. Understanding your thresholds and the reliefs available — and acting before assets pass — is the key to keeping more of your wealth in the family.

This article is general information only and is not legal or tax advice. Tax reliefs have detailed conditions and change over time. Please book a consultation with a qualified professional before acting. Reviewed for general accuracy by an Irish solicitor.