Following Budget 2027 announcements, Revenue updated its Capital Acquisitions Tax (CAT) guidance manuals on 12 October 2026. The key change is the increase of the Group A (parent-to-child) tax-free threshold from €335,000 to €400,000, effective for gifts and inheritances taken on or after 9 October 2026. Group B and C thresholds remain unchanged at €32,500 and €16,250 respectively. The guidance also clarifies the interaction between the increased threshold and agricultural relief (90% reduction), confirming the relief applies to the market value after the threshold. New examples illustrate the calculation for mixed estates comprising agricultural and non-agricultural assets.
Key Takeaways
- Threshold Increase: The €65,000 rise in Group A threshold provides significant savings for children inheriting from parents, especially for family businesses and farms.
- Agricultural Relief Mechanics: Relief reduces the taxable value by 90% after the threshold, not before; updated examples prevent miscalculation.
- Valuation Date Rules: The new threshold applies based on the valuation date (date of gift or inheritance), not the date of death, requiring careful planning for pending estates.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement