CAT is a tax on gifts and inheritances. You may receive gifts and inheritances up to a set value over your lifetime before having to pay CAT. Once due, it is charged at the current rate of 33% (valid from 6 December 2012). 

There are options available to protect your family such as:

Annual gifting of up to €3,000 – Gifts of €3,000 or less in a year are exempt from CAT but you cannot back-date, so if you don’t use it, you lose it Effecting a ‘Section 72 Life Assurance Policy’ – this is a Revenue approved life assurance policy where the proceeds are used tax free to settle an inheritance bill