Written answers
Tuesday, 21 June 2016
Department of Finance
Tax Code
Martin Heydon (Kildare South, Fine Gael)
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145. To ask the Minister for Finance if he will consider increases to thresholds of inheritance tax to take account of different types of family units, including those who wish to pass on family property to nieces, nephews and other family members, outside of threshold A; and if he will make a statement on the matter. [17158/16]
Michael Noonan (Limerick City, Fine Gael)
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As with all tax areas capital acquisitions tax (CAT), including issues such rates of tax, tax-free thresholds, reliefs and exemptions, is kept under review. As part of Budget 2016 I raised the Group A tax-free threshold applying to gifts and inheritance from parents to their children from €225,000 to €280,000. This represented an increase of about 25%. I did this in recognition of the improving state of the public finances and of the concerns expressed to me by people making and receiving gifts and inheritances, particularly in a context of rising property prices.
I indicated at the time that I saw the change to the Group A tax- free threshold in the last Budget as the start of a process. The extent to which increases in the various tax-free thresholds for CAT purposes can be accommodated in the future will depend, among other things, on the continuing economic recovery and the competing choices for limited resources. The Deputy will be aware of the commitment in the Programme for a Partnership Government to work with the Oireachtas to raise the Group A CAT tax-free threshold (including all gifts and inheritances from parents to their children) to €500,000.
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