Information on tax after a bereavement

What is a beneficiary?

If you inherit an asset from someone after they die you are a beneficiary. You may have to pay Capital Acquisitions Tax (CAT) on the value of your inheritance. 

The amount of CAT due depends on your relationship to the deceased and the value of the inheritance. You may be able to claim certain exemptions or reliefs on your inheritance. 

Income Tax (IT)

You may receive an inheritance which will have been valued at the date of death. As the beneficiary you must pay tax on any income from the date the assets are distributed to you.

Capital Gains Tax (CGT)

No CGT is due on assets transferred by the personal representative to the you, the beneficiary. However, if you sell the assets at a later stage there may be CGT due.

CGT is calculated on the increase in value of the asset between the date of death and the date of sale.

Surviving spouse or civil partner

You do not have to pay CAT if you receive an inheritance from your deceased spouse or civil partner.

Other beneficiaries

Any inheritance you receive is added to the value of all other inheritances or gifts you have received since 5 December 1991. If the total value is above the group threshold you will have to pay CAT.

There is more information in the Gains, gifts and inheritance section.

Next: What is a trustee?