C.A.T Thresholds - probably a stupid question

Hello,

I was wondering if someone could please answer what is quite possibly a stupid question for me.

Is the C.A.T. Threshold (say from parent to child for total €225,000) the combination of all gifts & inheritances, or is there a threshold of €225k in respect of total gifts & a seperate threshold of €225k for inheritance - i.e. facilitating a total of €450,000 to be transferred beteween both gift & inheritance between a parent & child ?

Sorry, as I say probably a stupid question but I have found the more I try to look this up, the more confused I am becoming with the various references to Inheritance Tax & Gift Tax.

Many thanks

Hi Mr Earl

The CAT threshold applies to gifts and inheritances combined.

Is this related to your separate A(M)RF query? Does your friend have a wife and/or children?

The clue is in the name - Capital Acquisitions Tax so there is only one tax to cover gifts and inheritances.

Only one threshold but the small gift exemption of €3,000 per person per annum applies (to gifts only).

Thanks folks.

elacsaplau said:

...Is this related to your separate A(M)RF query? Does your friend have a wife and/or children?

Click to expand...

Yes, same family and no end of complications.

They are going to go see both their solicitor and sepertely their accountant next week, just been trying to gather a few notes with them before they set off ...

Again, my thanks.

Fair play to you....

From the attached link, there's a guide to ARFs/AMRFs which can be downloaded and which should help to answer your queries.

[broken link removed]

Many thanks

As I say, just trying to help give some pointers, then I'll be leaving it to the experts.

The ARF and AMRF is outside CAT for kids over 21 and spouses are exempt. For kids over 21, they pay tax of 30% on the value of the ARF. If the kids are under 21, it is liable to CAT but not incme tax. I answered the other questions on the ARF thread you put up.


Steven
www.bluewaterfp.ie