Brendan Smith (Cavan-Monaghan, Fianna Fail)
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55. To ask the Minister for Finance the position regarding a person now in their 60s who was informally adopted during the early months of their life, cared for and raised by an aunt and her husband who have now died and left the family home-estate to them; the way problems which are now arising in relation to probate and taxation can be rectified (details supplied); and if he will make a statement on the matter. [15730/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the taxpayer in question has not made contact with them in relation to this matter to date. The following information outlines the conditions that need to be satisfied to qualify for the Capital Acquisitions Tax relief threshold applicable in the case of an inheritance by a son or daughter. With effect from 6^th December 2012, this relief threshold is €225,000.

For the purpose of Inheritance Tax, the relationship between the person who provided the inheritance (i.e. the Disponer) and the person who received the inheritance (i.e. the Beneficiary) determines the maximum tax-relief threshold due.

The Capital Acquisitions Tax Consolidation Act 2003 defines a "child" as follows;

- A natural child of the Disponer 

- A stepchild of the Disponer

- A child who is adopted under an adoption order within the meaning of section 3(1) of the Adoption Act 2010 or the subject of an inter-country adoption effected outside the State and registered under the Adoption Act.

On the facts provided the taxpayer would not appear to satisfy the definition of a child.  However, there is also a provision in the Capital Acquisitions Tax Consolidation Act 2003 (Schedule 2 Part 1, Paragraph 9) which enables Foster Children, both formally and informally fostered, to benefit from the tax relief threshold due on an inheritance by a son or daughter. Based on the information provided by the Deputy the taxpayer in question may be eligible for this relief.

To be eligible for Foster Child Relief the following conditions must be met:

- For formally fostered: Where the inheritance is taken by a beneficiary on the date of death of the disponer, that the beneficiary had, prior to the date of inheritance been placed in the foster care of the disponer under the Child Care (Placement of Children in Foster Care) Regulation 1995 (SI No 260 of 1995) or the Child Care (Placement of Children  with Relatives) Regulation 1995 (SI No 261 of 1995), or

- For informally fostered:  Where a beneficiary throughout a period or periods of at least 5 years within the first 18 years after the beneficiary's birth  (i) has resided with the disponer and (ii) was under the care of and maintained by the disponer, at the disponer's own expense.

- The relief applies where the claim for the relief is verified by the testimony of at least two witnesses.

Where the beneficiary meets the eligibility required to claim the Foster Child Relief, then, for the purposes of computing the Capital Acquisitions Tax payable on their inheritance, that beneficiary is deemed to be a "child" of that disponer and, consequently will qualify for the relief threshold applicable in the case of an inheritance by a son or daughter of the disponer, namely €225,000.

In order to apply for the relief the taxpayer must file a self assessed inheritance tax return through Revenue's on-line ROS system. Full details on how to file an inheritance tax return is provided on the Revenue website . If further clarification is required, the taxpayer may contact the Dublin Capital Acquisitions Tax Unit directly regarding her inheritance.  The contact details are as follows: Telephone: 1890 20 11 04 - Opening Hours: 10.00 to 12.30; Public Office: Capital Acquisitions Tax Customer Service Unit, Central Information Revenue Office,      Aras Brugha, Cathedral Street, 9-15 O'Connell St, Dublin 1 - Opening Hours: 10.00 to 12.30 and 14.30 to 16.00; and Email: .