When is Capital Acquisitions Tax paid on a gift from parent to child?

John A Sinnott Solicitors, personal insolvency

Capital Acquisitions Tax is payable if you receive a gift or inheritance, the value of which exceeds your lifetime’s tax-free threshold.

Up until recently, you were exempt from paying this tax if you received a gift (not an inheritance) of money or money’s worth for your support, maintenance or education from a parent, from a parent’s civil partner or from a person who is legally responsible for you.

Since December 2014, this exemption has been restricted to apply only to those who are:

  • under 18
  • under 25 but still in full-time education
  • permanently incapacitated due to a physical or mental infirmity

More information is available on the Revenue website.  Click here to read the full Guide to CAT Treatment of Receipts by Children from their Parents.

Contact us if you want to discuss any aspect of gifts or inheritance.