Capital Acquisitions Tax & Estate Planning

Capital Acquisitions Tax is charged on the receipt of assets by way of gift, inheritance or otherwise received at less than market value. Again, the current downturn in the market may present an opportunity to transfer wealth to the next generation in a more tax-efficient manner. Where assets are transferred at market value, any future increase in their value will accrue to the transferor’s children or beneficiaries. We work closely with clients wishing to pass on assets to their successors in the most tax-efficient manner possible. This begins with reviewing all exemptions and reliefs for each individual client.

Some of the more common exemptions/reliefs include:
• Small gift exemption
• Exemption for spouses
• Agricultural relief
• Business property relief
• Credit for Capital Gains Tax paid against Capital Acquisitions Tax due
• Exemption of certain dwellings

We also regularly advise on the taxation implications arising from specific terms contained in our clients' wills and the use of discretionary trusts for both taxation and personal reasons.

Careful planning for CAT has become particularly important for the following reasons;
• Possible future increases in the rate of CAT – currently 33%
• Recent increases in CAT as a result of other changes to legislation eg the increase in the CAT rate from 30% to 33% as well as the recent reduction in CAT tax free thresholds
• Tax saving opportunities presented by relatively low values of property and other assets.


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HLB Ireland is a member of HLB International International
A world-wide network of independent accounting firms and business advisers.

  • Phone: +353 1 631 1200
  • Fax: +353 1 631 1250
  • Email:
  • Location: Harmony Court, Harmony Row, Dublin 2, Ireland

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