Life Insurance Ireland

Capital acquisition tax is a tax on the estate of a deceased person. The current rate of tax is 33% above the tax free level. Benefits passing between married couples and civil partners are exempt from inheritance tax.

Benefits passing between cohabiting couples are taxed at 33% above the threshold of €16,250, subject to certain exceptions.

Family home relief

Relief from capital acquisition tax on the passing on an interest in the family home is available to anybody satisfying the following conditions:

• The person has occupied the house as their sole or main residence for three years prior to the date of the inheritance.
• At the date of the inheritance the person does not hold an interest in any other dwelling house.
• the person continues to occupy the house as their sole main residence for six years after the date of the inheritance.

Please note that this relief relates to the family home only and any other assets passing between cohabiting couples will be subject to 33% tax on their value above the threshold.

To cover the potential liability cohabiting couples should put in place a policy to cover the potential tax liability or in the case of mortgage protection the policies should be taken out on the life of another basis and paid out of an account held by the policy owner.

For more information please call us.