Written answers
Tuesday, 9 April 2024
Department of Finance
Tax Reliefs
Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
300. To ask the Minister for Finance the way a person wishing to claim the favourite niece/nephew relief can meet the requirement to work the land of their aunt/uncle substantially on a full-time basis of at least five years prior to inheritance, on land that that has been zoned for development; and if he will make a statement on the matter. [14504/24]
Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
Capital Acquisitions Tax (CAT) is the tax that applies to gifts and inheritances. The relationship between the person who provides a gift or inheritance (the disponer) and the person who receives a gift or inheritance (the beneficiary) determines the maximum tax-free threshold (Group threshold) below which CAT does not arise.
Any prior gifts or inheritances received by a beneficiary since 5 December 1991 from within the same Group Threshold is aggregated for the purposes of determining whether any CAT is payable on a current benefit.
There are three tax-free Group thresholds:
- the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer;
- the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;
- the Group C threshold (currently €16,250) applies in all other cases.
Favourite Nephew/Niece Relief will apply where:
- the nephew or niece has worked substantially on a full-time basis for 5 years prior to the date of the gift or inheritance for the disponer in carrying on, or assisting in carrying on, the trade, business or profession of the disponer, and
- the gift or inheritance consists of property that was used in connection with the business, trade or profession of the disponer.
- more than 24 hours a week for the disponer, at a place where that business, trade or profession is carried on, or,
- more than 15 hours a week for the disponer, at a place where that business, trade or profession is carried on exclusively by the disponer, the spouse or civil partner of the disponer, and the nephew or niece.
Further information on favourite nephew or favourite niece relief is available on the Revenue website at www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/favourite-nephew-or-niece-relief/index.aspx.
No comments