Peter Burke (Longford-Westmeath, Fine Gael)
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101. To ask the Minister for Finance the date the changes in the threshold for capital acquisitions tax will increase from €280,000 to €310,000; and if he will make a statement on the matter. [31430/16]

Peter Burke (Longford-Westmeath, Fine Gael)
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102. To ask the Minister for Finance if a person inherits €260,000 now, whether they will be entitled to inherit a further €50,000 without being liable for capital acquisitions tax after the date when the threshold rises from €280,000 to €310,000; and if he will make a statement on the matter. [31431/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 101 and 102 together.

I am advised by Revenue that the relationship between the person who provides the gift or inheritance (i.e. the disponer) and 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. The Group A tax-free threshold 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. As part of Budget 2017, I announced the raising of the Group A tax-free threshold from €280,000 to €310,000.  This higher threshold will take effect for all gifts and inheritances that are received on or after 12 October 2016. The increased Group A threshold will be provided for in the Finance Bill. 

Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether any tax is payable on a current benefit. Tax at the rate of 33% is payable on any excess received over the relevant tax-free threshold.  As regards the scenario put forward by the Deputy, the position is that once the Finance Bill is passed into law, an individual who had already received aggregate benefits under the Group A category since 5 December 1991 of €260,000 and who then receives a further benefit of €50,000 under that same category on or after 12 October 2016 would not have exceeded the amended Group A tax-free threshold applicable at the date of the latest benefit (i.e. €310,000) and would have no CAT liability. Any further gift or inheritance from a Group A disponer which brings the aggregate above this threshold sum would be subject to CAT at 33%.