Inheritance tax ireland

Inheritance Tax Just Got a Makeover! ✅ Here’s What You Need to Know!

Big news from Budget 2025! 🎉 The inheritance tax threshold is getting a substantial bump to €400k. Here's your guide to the changes that may impact you and your kin!

It's official folks! The Budget 2025 announcement has confirmed a significant increase in the inheritance tax threshold, marking the first major change in a while. Starting now, you can inherit up to €400,000 tax-free from your dear old mum or dad without breaking a sweat! Previously capped at €335,000, this shift gives families across Ireland a much-welcomed financial breather. Say goodbye to the nagging worry of that pesky Capital Acquisitions Tax (CAT) looming over your loved ones’ financial plans.

This development not only eases the burden on children inheriting from their deceased parents, but it also applies to other relatives. For the first time in six years, thresholds for sibling and friend inheritances are seeing a rise too! While adults might secure a bit of extra cash, keep in mind that the exemption for other categories still remains well below the golden €400k ceiling. Still, a little extra *moolah* never hurts! Plus, it means fewer reminders about your parents’ collection of ceramic frogs when they eventually pass them down.

Of course, it’s important to remain in the know about these tax moves! With these updates come fresh calculations and potential adjustments in estate planning. Whether you’re a tax expert or someone who thought CAT only referred to the furry creatures, it’s time to perk up your ears and have a chat with your financial advisor. Who knows? This could also be the ideal time to revisit that will you hastily drew up after a couple of pints last St. Patrick’s Day!

As we all breathe a sigh of relief knowing that family wealth can be passed down easier, there's always something to learn amid the changes! For instance, did you know that the CAT has been around since 1976? Or that inheritance taxes can vary across countries, with some places not having any at all?! If you’re an air-tight planner, this could spark some exciting money moves! So dust off those family heirlooms and relax; the rugrats are getting a break!