Inheritance tax: which threshold applies, deceased in 2020, probate 2025

M

mystic biscuit

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Good afternoon
A new poster, my first question. I have checked through threads and cannot find a similar question/answer.


My brother sadly died in 2020 (RIP). After looking for a will for some time, it was concluded that he was intestate. It took some time to administer the estate; the probate date was only in April 2025, and with further delays, the recipients received their inheritances in March 2026.


Which Group B threshold applies threshold applies €40,000 or €32,500?

I gather that the €40,000 threshold applies from 2-10-2024 onward. I was unsure if the threshold is determined by (1) Date of gift/inheritance, (2) the valuation date, or (3) the date of the disponer’s death. I am looking at the IT38S and scratching my head.

Thank you for your input

Happy Easter

Best wishes
 
A Revenue Commissioners reference:

Important dates for CAT

This page explains the important dates for dealing with CAT
www.revenue.ie www.revenue.ie

"The date of an inheritance is usually the date of death of the person leaving the inheritance. These dates determine the CAT rates and the group threshold that apply."

The valuation date (this determines when a return must be filed/ tax becomes payable) might have been 'messier' in the OP's scenario. The following web page outlines the principle that applies to determining the valuation date for an inheritance:

What is the valuation date?

This page explains what the valuation date is
www.revenue.ie www.revenue.ie

" The valuation date for an inheritance is the earliest of the following dates:
  • the date the executor or administrator is entitled to retain the asset for your benefit
  • the date on which the asset is retained
  • the date the executor or administrator gives the asset to you."
 
The Group B threshold that applies is determined by the date of the inheritance, which for CAT purposes is the date of death of the disponer, not the valuation date or the date you physically received the money.

So the threshold that applies is the Group B threshold in Force on the date of death in 2020, which was €32,500.

The €40,000 Group B threshold only applies to inheritances where the date of death is on or after 2 October 2024.

Thanks
Irish Tax Hub
 
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