The tax thresholds for inheritance, gift and probate tax for 1999 have been set by the Revenue Commissioners.

Capital acquisitions tax (CAT), which covers both gifts and bequests, is determined by the relationship between the donor and the recipient and there are three different thresholds.

The Class A threshold, which covers gifts or legacies to sons or daughters, has been set at £192,900 for 1999 compared with £188,400 last year. Class B, which deals with bequests or gifts to parents, brothers, sisters, nieces, nephews and grandchildren, has a threshold of £25,720, up from £25,120 in 1998.

The Class C threshold, which covers all other relationships, has been raised to £12,860 from £12,560.

Although the thresholds have increased in line with inflation in recent years, the rapid rise in house prices, particularly in the Dublin area, means the thresholds are far less generous than in the past and more and more people are being forced to pay CAT on their inheritances.

Probate tax is also payable at 2 per cent on all estates above a certain level. The probate tax exemption threshold for 1999 has been set at £11,250, up from £10,980 last year.