Acquisitions tax intake to rise over years

THE Government is anticipating a modest tax take of around €27 million from Capital Acquisitions Tax (CAT) next year, but this will rise significantly over the coming years.

All that is changing — via Budget 2011 — in regard to CAT (which covers inheritance and gift tax) are the tax-free thresholds, which came down by approximately 20% as of midnight last night.

Finance Minister Brian Lenihan said the move was in response to “the economy-wide fall in asset values in recent years and builds on a similar measure introduced in the supplementary budget last year.”