The new tax free thresholds will be €434,000 for group A, inheritance and gifts from parents to children, €43,400 for group B, which is inheritance and gifts between brothers and sisters, grandparents to grandchildren, uncles and aunts to nieces and nephews and €21,700 for group C, inheritance and gifts between all other persons. Deputies will note that the proposed new threshold amounts do not represent a precise 20% reduction. They have been rounded down to the advantage of beneficiaries. It is estimated that the additional yield arising from the budget proposal will be in the order of €15 million in 2009 and the full year yield is expected to be in the region of €18 million. The impact of the rate increases has to be considered in tandem with the proposed 20% decrease in the three tax free CAT thresholds.

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