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A friend of mine says she and her siblings will have to pay 33% inheritance tax on a property that's come to them in rather convoluted circumstances. I was a little surprised to hear this and said I'd ask here.

The story is that her parents separated and the mother and children emigrated from Ireland. Years later a legal arrangement was made upon the father's death that the father's partner would be entitled to live in the house until her death at which point the house and land would become the property of his children.

The father's partner has recently died and now the friend is in the process of getting full title on the property with the intention of selling it. However, she believes she and her siblings will have to pay 33% inheritance tax. Might this be true?

If not, what other taxes might she expect to have to pay?

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    – Pat W. ♦
    Commented Oct 11 at 10:23

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Yes, Irish inheritance tax (formally Capital Acquisitions Tax) is charged at 33%, but there are substantial exemptions depending on the relationship between the donor (or disponer) and the recipient (or beneficiary).

A child who inherits from their parents can inherit up to €400,000 before paying any tax.

Note: This amount is for the child's lifetime, so if they already inherited €400,000 from one parent, they would have to pay the full 33% on any further gifts or inheritances.

Source: Capital Acquisitions Tax (CAT) thresholds, rates and aggregation rules

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    Important difference to the UK: It’s per person who inherits so leaving two million to five children (400,000 each) is still tax free.
    – gnasher729
    Commented Oct 18 at 18:37

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