Róisín Shortall (Dublin North West, Social Democrats)
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74. To ask the Minister for Finance if inheritance tax must be paid before a house is sold in circumstances in which a house is willed to a person; and if so, the review that has been carried out on this arrangement in view of the effect it may have on the number of vacant dwellings in the State if the beneficiary is unable to afford or raise the amount of the tax in advance of the sale. [12090/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the date on which inheritance tax (Capital Acquisitions Tax) falls due is determined by the ‘valuation date’ on which the market value of the assets and property included in an inheritance must be established. Where this date is between 1 January and 31 August, inheritance tax must be paid by 31 October in the same year. Where this date is between 1 September and 31 December, inheritance must be paid by 31 October in the following year.

Section 30 of the Capital Acquisitions Tax Consolidation Act 2003 contains the rules for determining the valuation date. The valuation date depends on the particular circumstances of a case and is not a fixed date in relation to all inheritances. It can be the date on which the assets and property included in an inheritance are given to a beneficiary or such earlier date on which the executors of the will become entitled to retain the assets or property for the benefit of a beneficiary. Generally, the executors are entitled to retain the property for the benefit of the beneficiary on the date on which probate or administration is granted. Where there is a delay in completing the administration of the estate after that date it may happen that inheritance tax falls due for payment before that administration is complete.

Where a person has an inheritance tax liability to pay due to an inheritance of ‘real’ property such as lands and buildings, he or she has a statutory entitlement to pay this liability by monthly instalments over a period of up to five years.  Instalments are subject to the payment of interest at an annual rate of 8%. However, Revenue has discretion to allow payment of CAT by instalments over a longer period of time in exceptional circumstances where the tax cannot be paid without excessive hardship. In such circumstances, Revenue also has the discretion to allow payment to be postponed for such period and on such terms (including the waiver of interest) as it thinks 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.

I am also advised by Revenue that the fact that a beneficiary may have an outstanding inheritance tax liability does not prevent the beneficiary from selling an inherited house.

Given that, I cannot see how the review mentioned in your question would impact on the supply of vacant dwellings in the State.