Simon Harris has announced a cut in inheritance tax in Budget 2027. 

Currently, anyone can inherit €400,000 from their parents tax free and then pays Capital Acquisitions Tax of 33% on any amount above that threshold. 

However, from next year, children will be able to inherit €420,000 from their parents tax free. 

 

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The thresholds have also been increased for people who inherit from a sibling, grandparent, aunt and uncle; whereas, previously CAT applied to all inheritances above €40,000, now the tax free threshold has risen to €44,000. 

If you inherit from someone who is not related to you, CAT will now apply on inheritances above €22,000 - up from €20,000.

Main image: Simon Harris and Jack Chambers. Picture by: Alamy.com.