10th February 2026
What is CGT vs CAT — the core difference
- CGT (Capital Gains Tax) is a tax on profits or gains you make when you dispose of an asset — e.g. selling property or shares, or otherwise transferring or disposing of something that has increased in value since you acquired it.
• CAT (Capital Acquisitions Tax) is a tax on gifts or inheritances you receive — e.g. cash, property, shares, or other assets given to you as a gift, or inherited on someone’s death (or a gift that becomes treated as an inheritance if the giver dies within a certain period).
In short:
• CGT – tax on the increase in value when you sell/dispose.
• CAT – tax on the value of what you receive (gift/inheritance), above certain thresholds.
Rates, thresholds and when each applies (in Ireland)
CGT
- The standard CGT rate is 33% on the chargeable gain.
• What counts as a taxable gain: sale or disposal of assets such as property, land, shares, business assets, certain life policies/funds, intangible assets (goodwill, etc).
• You pay CGT when you dispose of the asset.
• If you reside in Ireland, you may be liable to CGT on worldwide gains.
CAT
- CAT applies only if the value of the gift or inheritance exceeds a tax-free threshold.
• Current thresholds (since 2 October 2024):
- Group A: €400,000
- Group B: €40,000
- Group C: €20,000
• Amounts above the threshold are taxed at 33%.
• A small-gift exemption of up to €3,000 per donor per year may apply.
• CAT is payable by the beneficiary.
Key Dates — CGT (Disposals) & CAT (Gifts/Inheritance)
- CGT disposals between 1 Jan – 30 Nov: payment due by 15 December
• CGT disposals between 1 Dec – 31 Dec: payment due by 31 January following year
• CGT returns must be filed by 31 October of the year following disposal - CAT valuation date between 1 Jan – 31 Aug: return and payment due by 31 October same year
• CAT valuation date between 1 Sep – 31 Dec: return and payment due by 31 October of the following year
Overlap — when you might pay both CGT and CAT
- CAT may arise when you receive a gifted or inherited asset.
• CGT may arise later if you dispose of that asset at a higher value.
This overlap makes early tax planning particularly important.
What to Keep in Mind
- CGT payments are due before filing deadlines.
• CAT obligations depend on the valuation date.
• Even where no tax is payable, filing obligations may still apply.
• Aggregation rules can significantly affect CAT exposure.
• Proper records are essential for effective tax planning.
Practical Take-aways (2026)
- Always review thresholds and reliefs before transferring or disposing of assets.
• Be aware that the same asset can give rise to CAT and CGT at different stages.
• Strategic tax planning can help reduce exposure and avoid missed deadlines.
If you need personalised guidance or support with CGT and CAT filings, contact our team today – we are here to help you navigate Ireland’s tax landscape with confidence.
