Inheritance & Gift Tax

Inheritance tax comes under the heading of Capital Acquisitions Tax.

Capital Acquisitions Tax (CAT) is the tax which is charged when you receive a gift or an inheritance. CAT comprises two separate taxes, a Gift Tax payable on lifetime gifts and an Inheritance Tax payable on inheritances received on a death.

If you are planning to leave assets to your family or others on death, or plan to gift assets during your lifetime, there is a potential risk that the value of these assets will be reduced by CAT. A CAT liability may result in a forced sale of assets where there are insufficient funds to settle the liability. This tax liability can, however, be mitigated or removed completely with proper tax planning.

Increases in the value of estate assets and a general trend of reduction in CAT thresholds in recent years means that inheritance and gift tax are now payable by a larger portion of the population.

There are certain types of exemptions and reliefs that apply to certain types of assets. The main exemptions/reliefs are: –

  • spouse or civil partner exemption
  • agricultural relief
  • business relief, and
  • life assurance relief

We focus on relief that can be obtained using Section 72/73 life policies.

Once we have reviewed your position and requirements in relation to these variables, we will recommend a pre and post-retirement plan which is specifically tailored to your circumstances.

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