Thresholds and the group-based system
Group A (parent-to-child): €400,000. Group B (close relatives): €40,000. Group C (strangers in blood): €20,000. Thresholds are aggregate across your lifetime, prior gifts from the same group reduce what remains. We track the running total across multiple events and generations.
The Dwelling House Exemption
Section 86 CATCA can make an inherited home completely tax-free, but the conditions are strict and often misread. The beneficiary must have lived in the property for three years before the inheritance, not own or have an interest in any other dwelling, and continue to occupy the property for six years after. We assess eligibility in advance and document the claim properly.
Agricultural & business reliefs
Both reliefs can reduce the taxable value by 90%. Agricultural relief requires the "farmer test" on the beneficiary. Business relief applies to qualifying trading businesses held for two years (or five, on gift). Structuring ahead of the event matters enormously.
IT38 filing & Revenue correspondence
The IT38 is filed by 31 October following the valuation date. We prepare the valuation schedule, apply the reliefs and exemptions, and liaise with Revenue on any follow-up queries. Self-assessment, but assessed by us first.
FAQ
My parents want to gift me a deposit for a house. Is it taxable? +
Gifts count against the same lifetime threshold as inheritances. The first €3,000 per disponer per year is exempt under the small-gift exemption. Above that, the amount reduces your Group A threshold.
Do I have to file an IT38 if the inheritance is below the threshold? +
Only if the aggregate of current and prior benefits in the same group exceeds 80% of the threshold. We'll check the running total for you.
What if the estate hasn't yet been distributed? +
The IT38 is filed by reference to the valuation date, which is usually the date of death or grant of probate, not the actual distribution. We work with your solicitor on timing.