Oireachtas Joint and Select Committees

Tuesday, 15 November 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2016: Committee Stage (Resumed)

2:00 pm

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

During the financial crisis, it proved necessary to reduce the threshold at which capital acquisitions tax applied to preserve the level of revenue as far as possible. In budget 2016, the Minister was in a position to begin a process of reversing these reductions. He increased the group A threshold from €225,000 to €280,000. He also saw this increase as the start of a process and, depending on the continuation of the economic recovery and his reappointment as Minister for Finance, he said he would examine the scope for further increases in subsequent years. Economic recovery has continued and in the Minister's budget statement this year, he announced a further increase in the group A threshold to alleviate higher tax demands on individuals who are inheriting family homes as a result of increasing property prices. This year, he is also increasing the group B and C thresholds.

The Deputy has a concern about the inheritance of a home in which a person does not live and the payment of the tax that would be due on the amount above what is relieved. Inheritors have a right to pay any tax due over five years. The Revenue Commissioners have discretion to accept payment over a longer period in cases of hardship. There are methods by which that can be achieved.

Comments

No comments

Log in or join to post a public comment.