Claire has received a gift worth €40,000 from her parents. She identifies the CAT threshold as Group A and the threshold is €335,000.
She adds together the taxable value of all prior benefits she has received in Group A since 5 December 1991. Claire calculates she has received prior benefits with a taxable value of €300,000.
CAT aggregation rules (post 5 December 2001)
Description | Calculation | Value |
Group threshold
|
|
€335,000
|
Total taxable value of prior benefits in group
|
|
€300,000
|
Unused balance of threshold
|
€335,000 – €300,000
|
€35,000
|
Value of current benefit
|
|
€40,000
|
Excess amount
|
€40,000 – €35,000
|
€5,000
|
Claire must pay tax on the excess amount of €5,000.