The thresholds for Capital Acquisitions Tax have been adjusted for inflation for 2001.
For the purpose of gift and inheritance tax, the relationship between the person who provides the gift or inheritance and the person who receives it determines the maximum tax-free threshold.
Three group thresholds were introduced in December 1999. The tax-free threshold for Group A - son or daughter - has increased from £300,000 to £316,800. Group B - parent/ brother/ sister/ niece/ nephew/ grandchild - has increased from £30,000 to £31,680.
The beneficiary of a gift or inheritance who has a relationship other than Group A or B with the disponer may now receive £15,840 tax free.
Further information may be obtained from the Capital Taxes Division at Dublin Castle, telephone Lo-call 1890 20 11 04.