1.
The rates of inheritance tax and
gift tax are applied by reference
to the aggregate of all taxable
inheritances and taxable gifts
taken after 5th December 1991 by
the beneficiary being taxed. Inheritances
or gifts taken before 5th December
1991 are not aggregated in relation
to inheritances or gifts taken
on or after that date.
2.
Tax rates were considerably higher
for benefits taken prior to 1st
December 1999 and differed between
gifts and inheritances.
3. For the purpose of
Gift and Inheritance Tax,
the relationship between
the person who provided
the gift or inheritance
(i.e. the Disponer) and
the person who received
the gift or inheritance
(i.e. the beneficiary),
determines the maximum tax
free threshold - known as
the "group threshold".
Three Group thresholds were
introduced on 1 December
1999 in respect of gifts
and inheritances taken between
1 December 1999 and 31 December
2000. The Group thresholds
are indexed by reference
to the Consumer Price Index
and the indexation factor
for 2006 (1 January 2005
to 31 December 2005 inclusive)
is 1.255. The indexed Group
thresholds for 2004, 2005
and 2006 are set out in
the table below.
4.
For the new indexed threshold amounts,
see table below.
Relationship to donor
Gift or inheritance
in
2004(€)
2005(€)
2006(€)
Son/Daughter
456,438
466,725
478,155
Parent*/Brother/Sister/
Niece/Nephew/
Grandchild
45,644
46,673
47,815
Any other person
22,822
23,336
23,908
* In certain circumstances a parent
taking an inheritance from a child
can qualify for the Group A threshold.
