Daughter (single) dies leaving € 500,000 to parents. What is the CAT position?
The Group A threshold (€335,000) applies where the inheritance is taken by a parent of the disponer on the death of the disponer, and the interest taken is not a limited interest: CATCA 2003 Sch 2 (group threshold)(a)(ii). The balance of €165,000 is taxed at 33%.
Also CATCA 2003 s 79exempts inheritances (not gifts) [even if above the parent-child threshold] taken by a parent from a deceased child if that child received a non-exempt gift from either parent within five years prior to the child’s death.