Guidance on a Capital Acquistion Tax calculation.

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Brenno123

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Hi all...hope someone can tell me if I am going correct on my CAT calculation as follows

1. Received gift of €200k in 2007 less 2 small gift exemptions from parents = €194k.
2. Receive gift of €203k this year (2016) less 1 small gift exemption from parent = €200k.

My CAT calculation for this year;

A. Current Benefit €200k+€194k=€394k - €280k = €114k@33%=€37,620
B. Prior Benefit €200-€280k=-€80k@33%=NIL

A-B=€37,620-NIL=€37,620

Seem correct?
I think I am right...seems unfair though as people receiving previous larger gifts benefit from the reduction in the tax threshold from over €500k to €280k.
 
It is correct.

They're only benefiting in the sense that they timed the gift or inheritance to coincide with a time when the threshold was higher. The current rules are only relevant to current gifts/inheritances (subject to the lookback which makes sense).
 
Gordon Gekko said:
It is correct.

They're only benefiting in the sense that they timed the gift or inheritance to coincide with a time when the threshold was higher. The current rules are only relevant to current gifts/inheritances (subject to the lookback which makes sense).
Click to expand...

Don't forget the annual cgt exemption of I think 1270 so your liability should be reduced by this amount
 
Dublin32 said:
Don't forget the annual cgt exemption of I think 1270 so your liability should be reduced by this amount
Click to expand...

Also don't forget to claim a VAT deduction. Or to claim a credit for USC paid over the previous three year period. It's amazing the way a CAT bill can be reduced with a little creativity.
 
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