Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

In my reply to a previous question from the Deputy in April last, I said that the conditions which must be met for the higher tax-free threshold of €225,000 to apply in the case gifts or inheritances taken by a foster child are set out in legislation. I understand the Deputy is referring to the requirement that, in the case of gifts to formally fostered children and gifts and inheritances to informally fostered children, the child must reside with the foster parent for at least five years before reaching 18 years of age for the higher threshold to apply, otherwise the threshold of €15,075 applies.

I said I would examine, without prejudice and in conjunction with the Revenue Commissioners, any tenable case that may be made for a change in the five year requirement. I went on to say, however, that it is only reasonable that the system demands that appropriate tests be met to justify the provision of the relief and to guard against any possible abuse. Since then, I have not received any correspondence setting out a tenable case that the requirements governing qualification for the higher group A threshold by a foster child need to be examined. If a tenable case is made, setting out the full circumstances in which it is considered that the existing provisions under which foster children qualify for the same group A threshold as natural children require to be revisited, the matter will be examined subject to the considerations set out in my earlier reply. If we can move this from theory to a practical example, I will examine the details of the practical example and, if it appears to be unfair, I will consider bringing forward an appropriate amendment.

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