Billy Timmins (Wicklow, Fine Gael)
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Question 291: To ask the Minister for Finance the threshold for inheritance tax; the off-sets that can be used against it; the amount collected in tax under this category in 2000 to 2005 inclusive; and if he will make a statement on the matter. [35376/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that for the purposes of both Gift and Inheritance Tax, the relationship between the person who provided the gift or inheritance (i.e. the disponer) and the person who received the gift or inheritance (i.e. the beneficiary), determines the maximum tax-free threshold-known as the "Group threshold". Three Group thresholds are based on the relationship of the beneficiary to the disponer and are indexed annually by reference to the Consumer Price Index. The following are the Group thresholds for 2006: Group A: €478,155 — applies where the beneficiary is a child (including certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance from a child. Group B: €47,815 — applies where the beneficiary is a brother, sister, niece, nephew, or lineal descendant of the disponer. Group C: €23,908 — applies in all other cases.

Where both Capital Gains Tax and Capital Acquisitions Tax (Gift or Inheritance Tax) arise on the same asset on the same event, for example, on a gift of an asset, the Capital Gains Tax can be off-set or credited against the Capital Acquisitions Tax liability. From 21 February 2006, if the asset is disposed of within 2 years of the date of the gift, the off-set or credit allowed will be clawed back.