Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Question 208: To ask the Tánaiste and Minister for Finance if his Department has estimated the cost to the Exchequer of extending the income tax and inheritance tax benefits of married couples to same-sex couples; and if he will make a statement on the matter. [3264/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that, as same-sex couples are not separately identified in tax statistics, it is not possible to provide the precise information requested by the Deputy.

However, in the event that a formal registration scheme for same-sex couples were introduced, it is estimated that the cost of extending married treatment under the income tax code to such couples could be of the order of €3 million per annum for every 1,000 same-sex couples registered.

With regard to inheritance tax, inheritances from spouses are exempt from Capital Acquisitions Tax. In the case of same-sex couples, class 3 threshold applies which provides an exemption of €26,060 with the balance taxable at 20%. The cost of extending the benefits for married couples to same-sex couples is therefore €20,000 in respect of every €100,000 inheritance above the current threshold.

However, it must be borne in mind that there is an existing exemption in respect of a dwelling house which is transferred to an individual who has resided in the house for at least 3 years and continues to reside in it for the following 6 years. The value of this house is not taken into account for Capital Acquisitions Tax, nor is there a requirement for any relationship between the both parties.