Updated 10 October 2026

When you’re dealing with an inheritance or helping a family member with a gift, tax paperwork can feel like another pressure. Start with three questions: do you need to file a Capital Acquisitions Tax return, which threshold applies, and when must you file and pay?

The normal CAT deadline in Ireland for the 2026 filing period is 31 October 2026. A conditional ROS extension runs to 18 November 2026. A return can be required even when no tax is payable, and the October 2026 threshold increases do not change the treatment of every earlier inheritance.

Which CAT threshold applies to your gift or inheritance

Capital Acquisitions Tax, or CAT, is a tax on gifts and inheritances. Your relationship to the person giving or leaving the benefit determines your group. Group A usually covers a child receiving a benefit from a parent. Group B includes siblings and a niece or nephew receiving a benefit from an aunt or uncle. Group C includes friends and cousins. Exceptions apply: check Revenue’s CAT group guidance.

Budget 2027 increased the thresholds for gifts and inheritances dated on or after 7 October 2026. Earlier benefits keep the threshold applicable on their own date. Revenue’s threshold table gives these figures:

For earlier dates, use Revenue’s historical figures. CAT remains 33% on the taxable amount above the available threshold. Gifts and inheritances between spouses or civil partners have a separate exemption; an unmarried partner does not automatically qualify for it.

The threshold is cumulative. Taxable benefits received in the same group since 5 December 1991 count when assessing a new benefit. A parental gift towards a house deposit may therefore affect a later inheritance. The allowance is not a fresh amount for each parent or each estate. See Revenue’s aggregation rules.

Do you need an IT38 return if no tax is due

Usually, you must file an IT38 return when your current benefit and earlier taxable benefits in the same group exceed 80% of the applicable threshold. For Group A, the filing trigger is €320,000 for inheritances dated from 2 October 2024 to 6 October 2026, and €336,000 from 7 October 2026.

A daughter inherits a taxable benefit of €350,000 from a parent who died on 15 July 2026. With no earlier taxable Group A benefits, she owes no CAT because the €400,000 threshold applies. She must still file: €350,000 exceeds the €320,000 trigger. The October increase does not remove that obligation.

By comparison, a child inherits a taxable benefit of €330,000 from a parent who dies on 10 October 2026, with no earlier taxable Group A benefits. The €420,000 threshold applies. The benefit is below the €336,000 filing trigger, so the 80% test alone does not require a return.

Separate filing rules apply to agricultural or business relief claims and certain interest-free loan benefits. Check Revenue’s IT38 filing obligations before deciding no return is needed.

Why are the inheritance date and valuation date different

The date of a gift is normally when it is received. For an inheritance, the relevant date is usually the date of death. This date generally selects the threshold and tax rate. Completing probate or receiving an asset later does not, by itself, bring an earlier inheritance within the new thresholds.

The CAT valuation date establishes the value used for the tax calculation and determines the filing and payment period. For an inheritance, it may be later than the death. Establish it from the particular entitlement and estate records. Revenue’s guidance on important CAT dates explains the distinction.

When must you file and pay CAT in 2026

The normal 2026 deadline covers valuation dates from 1 September 2025 to 31 August 2026. A December 2026 valuation date instead gives a normal deadline of 31 October 2027.

For example, if a parent died in July 2026 and the inheritance has a December 2026 valuation date, the Group A threshold is €400,000 and the normal filing deadline is 31 October 2027. A later filing year does not change the inheritance’s threshold.

For the 2026 filing period, Revenue’s ROS extension allows eligible beneficiaries to file and pay by Wednesday, 18 November 2026. You must both submit the CAT return and make the appropriate payment through ROS. Completing only one action through ROS does not qualify: the ordinary 31 October deadline applies. If you’re unsure, work to 31 October while checking your eligibility.

What if your inheritance is tied up in a home

An inherited home can have a substantial value without providing cash to pay tax. Discuss funding early, alongside the property valuation and any proposed sale or buyout. A planned sale does not automatically postpone the CAT deadline. Check any relief you intend to claim before agreeing transactions that could affect it.

Executors can help assemble estate records, but beneficiaries need to address their own CAT position. If different people inherit different assets, establish the relevant dates and filing obligations for each person. Our probate solicitors can help you understand the estate administration and the next steps.

Does the small gift exemption change the deadline

Under the small gift exemption, the first €3,000 you receive in gifts from each giver in a calendar year is exempt from CAT. It does not use your group threshold, and those exempt gifts alone do not require an IT38.

Two parents can each give a child €3,000, making €6,000 in exempt gifts. If one parent instead gives €5,000, €3,000 is exempt and €2,000 must be considered with earlier taxable benefits in the same group. Tax or a return is not automatically due on that €2,000: assess the cumulative position.

The annual allowance runs to 31 December. A gift received in January 2027 normally uses the 2027 allowance, even if intended for December 2026. This calendar-year cut-off is separate from the CAT filing deadline. Keep evidence of the giver, recipient, amount and receipt date. Our guide to documenting gifts for the small gift exemption explains why those records matter.

Can the exemption be used after the giver dies

An executor cannot treat a bequest as an exempt €3,000 gift by using the deceased person’s unused annual allowance. The small gift exemption normally applies to lifetime gifts.

There is a specific exception where a qualifying lifetime gift becomes an inheritance for CAT because the giver dies within two years of making the disposition. Section 69(3) preserves the relief for that earlier gift. Revenue’s guidance on section 69, hosted by Chartered Accountants Ireland, explains the rule. Retain the original transfer records so that gift can be distinguished from the later inheritance.

If you’re planning gifts alongside a will, consider both together. Our estate planning and wills team can help you assess how proposed transfers fit your wishes and your family’s circumstances.

What happens if you miss the CAT deadline

Late filing can produce a surcharge of 5% of the CAT due, capped at €12,695, where the return is filed within two months of the deadline. Filing later raises the surcharge to 10%, capped at €63,485. Late payment can also attract daily interest. See Revenue’s late filing and payment charges.

Because the surcharge is based on tax due, a required return with no CAT payable does not automatically produce a 5% charge. The filing obligation still exists. If a deadline has passed, establish the correct dates and arrange any outstanding return and payment promptly.

What should you do before the deadline

Bring together these records so the filing position can be checked:

• The will or gift documentation and evidence of the relevant dates.
• A valuation of the benefit at the correct CAT valuation date.
• Details of earlier taxable gifts and inheritances in the same group.
• Bank records supporting any annual gifts and exemption claims.
• Details of reliefs you intend to claim and any return already filed.

If you’re unsure which threshold or deadline applies, contact HOMS Assist or call 1800 207 207 to arrange a consultation. We can help you review the records, understand your probate and inheritance position, and identify what needs to happen next.

Information updated on 10 October 2026. This article provides general information. The correct CAT treatment depends on the gift or inheritance date, valuation date, earlier taxable benefits and applicable exemptions or reliefs.

About the author: Claire Tuohy is a Partner at HOMS Assist, specialising in wills, trusts, probate, and cross-border estates. With dual qualifications in Ireland and England & Wales, and as an active member of the Society of Trusts and Estate Practitioners (STEP), Claire brings deep expertise in tax-efficient succession planning. Her commitment to clear, practical advice ensures high-net-worth clients navigate complex estate matters with confidence.