Mary Wallace (Meath East, Fianna Fail)
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Question 202: To ask the Minister for Finance the tax-free amount thresholds for capital acquisitions tax in 2010; the way this may apply to the beneficiary of a gift or inheritance; and if he will make a statement on the matter. [7805/10]

Brian Lenihan Jnr (Dublin West, 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" below which gift or inheritance tax does not arise. Apart from the total exemption of transfers between spouses, there are three Group thresholds based on the relationship of the beneficiary to the disponer and these Group thresholds are indexed annually by reference to the Consumer Price Index.

The indexed Group thresholds for 2010 are as follows:

Group A: €414,799 – applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: €41,481 - applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: €20,740- applies in all other case.

When calculating whether a beneficiary has received benefits in excess of his or her Group tax-free threshold, any other gifts and inheritances received by that beneficiary since 5 December 1991 from within the same Group are also taken into account.