Inheritance tax changes in the budget have brought some relief, but not enough [Video]

LAST UPDATE | 13 hrs ago

BUDGET 2025 BROUGHT in some long-awaited changes to Capital Acquisitions Tax (CAT) also known as Gift Tax or Inheritance Tax, and these updates should make life a bit easier for many families in Ireland who are dealing with this tax. Let’s dive into the details and what they mean for you and your family.

1. Increased CAT Thresholds: A welcome relief

One of the headline changes is the increase in CAT thresholds, which determines how much you can inherit or receive as a gift before getting hit with the 33% tax. Here’s what’s new:

• The Group A threshold (for inheritances from parents to children) has gone up from €335,000 to €400,000. This is great news for families, especially with the steep rise in property prices across Ireland.

• The Group B threshold, which covers inheritances from grandparents, siblings, nieces, and nephews, has increased from €32,500 to €40,000.

• The Group C threshold, …