Wednesday, 26 January 2011
Finance Bill 2011: Committee Stage
Martin Mansergh (Minister of State with special responsibility for the Arts, Department of Arts, Sport and Tourism; Minister of State with special responsibility for the Office of Public Works, Department of Finance; Tipperary South, Fianna Fail)
I move amendment No. 92:
In page 205, subsection (1), lines 26 to 29, to delete paragraph (c) and substitute the following:
"(c) as if, in the definition of "threshold amount" in paragraph 1 of Part 1 of Schedule 2, the consumer price index number for the year 2009 applied to gifts and inheritances taken in the year 2011.".
This amendment corrects a drafting error in section 65(1)(c) of the Bill. The effect of that paragraph would be to disapply indexation entirely for gifts and inheritances taken in 2011. The intention is that the annual change in the CAT-free group thresholds from 1 January by reference to the consumer price index number for the previous year will not apply to gifts and inheritances taken in 2011. This amendment will achieve this result so the tax-free thresholds after indexation, which were reduced by approximately 20% in budget 2011 for gifts and inheritances taken on or after 8 December 2011, will also apply to gifts and inheritances taken in 2011.
I will outline the relevant tax-free thresholds that will apply to gifts and inheritances taken in 2011. The group A tax-free threshold, which broadly covers transfers from parent to child, is €332,084. The group B tax-free threshold, which broadly covers transfers between siblings, from children to parents, from grandparents to grandchildren, and from uncles and aunts to nephews and nieces, is €33,208. The group C tax-free threshold, which covers all cases not covered in groups A and B, is €16,604.