What is Capital Acquisitions Tax (CAT) and how does it apply to gifts or inheritances of copyright?
Capital Acquisitions Tax (CAT) is a tax charged on the value of gifts and inheritances received. When transferring assets—such as copyrights—either during your lifetime or upon death, several tax considerations may apply:
If the transfer is made during your lifetime (a gift):
- Capital Gains Tax (CGT) may apply to the person giving the asset.
- CAT may apply to the person receiving the asset.
- Stamp Duty may also be payable by the recipient depending on the type of asset.
If the transfer happens on death (an inheritance):
- Only CAT applies.
- CGT does not apply on death.
- Stamp Duty is not charged on inherited property.
This also applies to copyrights and intellectual property. The Irish tax system treats the transfer of such rights similarly to other assets under the above tax heads.
For a more detailed overview of the Irish tax implications related to gifts and inheritances of copyrights, you can refer to the following memo:
🔗 Capital Acquisitions Tax Memo (PDF)
🛑 Please note: This material is for informational purposes only and does not constitute legal, tax, or accounting advice. Always consult your own professional advisors before making decisions or transactions involving tax or inheritance matters.