Finian McGrath (Dublin North Central, Independent)
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290. To ask the Minister for Finance his views on a matter (details supplied) regarding inheritance tax; and if he will make a statement on the matter. [34361/14]

Michael Noonan (Limerick City, Fine Gael)
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Capital Acquisitions Tax (CAT) is the overall name for both gift and inheritance tax.

For the purposes of CAT, the position is that the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives 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.

There are, in all, three separate Group tax-free thresholds based on the relationship of the beneficiary to the disponer.

Group A: €225,000 - 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: €30,150 - applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: €15,075 - applies in all other cases.

Any prior gifts or inheritances received by a beneficiary since 5 December 1991 from within the same Group threshold are aggregated for the purposes of determining whether any tax is payable on the current benefit.

The CAT tax code includes a specific exemption for gifts and inheritances of residential property, subject to certain conditions.

The principal conditions necessary to qualify for this exemption are that:

- The beneficiary must occupy the residential property as his or her only or main residence throughout the period of three years immediately preceding the date of the gift or date of the inheritance. 

- The beneficiary must not, at the date of the gift or inheritance, be beneficially entitled to any other residential property or to any interest in any other residential property. 

- The beneficiary must continue to occupy the residential property (or its replacement, if sold) as his or her only or main residence throughout the period of six years commencing on the date of the gift or the date of the inheritance.

On the basis of the information supplied, it is not possible to give a definitive answer regarding the specific case raised by the Deputy. While Revenue has published extensive information in relation to Capital Acquisitions Tax on , the family may also contact Jacinta Hunston, Dublin Regional Office, Dublin Castle, Dublin 2, telephone  (01) 8589268, e-mail to discuss the matter.