Tax Code
Dail Éireann — 2026-05-26
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Robert Troy (FF), Longford-Westmeath

I thank Deputy Cahill for raising this matter in the House today. I also acknowledge his advocacy on this issue since his election to Dáil Éireann. Capital acquisitions tax, CAT, is a beneficiary-orientated tax that is payable by the recipient of a gift or inheritance as opposed to the person providing that gift or inheritance. CAT plays an important role in ensuring that we maintain a broad tax base. It raised €854 million in 2024 and approximately €1.1 billion in 2025.
For CAT purposes, the relationship between the person giving a gift or inheritance, the disponer, and the person who receives it, the beneficiary, determines the maximum amount, known as the group threshold, below which CAT does not arise. The Finance Act 2024 increased each threshold, and the estimated cost was €88 million annually. The group A threshold, which in general applies where the beneficiary is a child of the disponer, increased to €400,000 from €335,000.
It is useful to note that the definition for children for CAT purposes includes any stepchildren, adopted children or certain foster children. All can avail of the group A threshold in respect of gifts and inheritances received from that disponer.
The Group B threshold increased to €40,000 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, lineal ancestor or lineal descendant such as a grandchild of the disponer. The group C threshold increased to €20,000 from €16,250, with this threshold applying in all other cases.
It should also be borne in mind that where a person receives gifts or inheritances that are in excess of the relevant tax-free threshold, CAT at a rate of 33% applies on the excess benefit.
It is important to be aware that there are significant costs associated with increasing the existing thresholds. For instance, a €100,000 increase in threshold A to €500,000 would cost in the region of €86.6 million, while an increase in threshold B to €60,000 would cost approximately €70.1 million.
Last year in the CAT tax strategy group, TSG, paper, Department of Finance officials reviewed idea of combining thresholds A and B to bring relatives such as nephews, nieces, brothers and sisters within the scope of the higher threshold. As part of this exercise Revenue estimated the cost of merging group B with group A to be €305 million. These costs have been updated recently and it is estimated that such a change could now cost in the region of €349 million.
The tax strategy group paper was published in advance of the budget and is the best means of considering issues such as inheritance tax in an analytical and transparent way. The tax strategy group is not a decision-making body and the papers produced by the Department of Finance are simply a list of options and issues to be considered in the budgetary process. Officials intend to include a further update of this matter in the tax strategy group papers later this year.
I thank the Deputy for raising this issue and assure him that the Tánaiste is conscious of the burden of capital taxation and continues to engage with his officials on these matters. The capital acquisition tax group thresholds are kept under review annually by officials throughout the Finance Bill cycle.

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Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted.

Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-05-26/debate/main
Retrieved: 2026-09-14T01:01:04+00:00
Sitting date: 2026-05-26