Jack Chambers (Dublin West, Fianna Fail)
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46. To ask the Minister for Finance his plans to change the threshold for siblings in respect of capital acquisitions tax; and if he will make a statement on the matter. [15190/16]

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

For the purposes of CAT, 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 life-time tax-free thresholdknown as the "Group threshold" below which gift or inheritance tax does not arise.

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

Group A: tax free threshold €280,000 applies where the beneficiary is a child (including adopted child, stepchild 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. I raised this threshold from €225,000 to its current level as part of Budget 2016.

Group B: tax free threshold €30,150applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: tax free threshold €15,075 applies in all other cases.

Transfers and inheritance between spouses are not subject to CAT.

Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold.

I have indicated that I see the recent change to the Group A threshold as the beginning of a process. The Deputy will be aware of the commitment in the Programme for a Partnership Government to work with the Oireachtas to raise the Band A capital acquisitions tax threshold (including all gifts and inheritances from parents to their children) to €500,000. Depending on various factors, including the state of the public finances, I will examine the scope for further changes in the future, including the possibility of changes to the Group B threshold.