Seán Fleming (Laois-Offaly, Fianna Fail)
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247. To ask the Minister for Finance if a person who has received an inheritance and who has to pay inheritance tax can agree to pay this in stages on an agreed phased basis, as the person may not have the cash resources to pay in one sum, and this may cause severe upset to family members if it is necessary to sell the house in order to raise the proceeds to pay the inheritance tax this year; and if he will make a statement on the matter. [24857/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that inheritance tax may be paid by instalments where a person inherits real property (i.e. buildings and land). However, there is no statutory entitlement to this facility were a person inherits property other than real property, unless a person inherits a limited interest only (i.e. for the duration of a life or a specified period) in the property.

In accordance with section 54 of the Capital Acquisitions Tax Act 2003, the tax may be paid by monthly instalments over a period of up to five years, with the first instalment due on the 31st of October following the valuation date. The instalments are subject to the payment of interest at an annual rate of 8%. The interest on the unpaid tax is added to each instalment and paid at the same time as the instalment.

Revenue has the discretion to allow payment of CAT by non-statutory instalments over a longer period of time on a concessionary basis in exceptional circumstances where the tax cannot be paid without excessive hardship. In cases of hardship, Revenue also has the discretion to allow payment to be postponed for such period and on such terms (including the waiver of interest) as they think fit.

Revenue will consider each case on its merits, taking into account both the financial circumstances of the beneficiary and the nature of the inheritance involved.