Niall Collins (Limerick County, Fianna Fail)
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340. To ask the Minister for Finance to detail the inheritance tax thresholds for 2025 and any planned changes to same in subsequent years; and if he will make a statement on the matter. [1397/25]

Jack Chambers (Dublin West, Fianna Fail)
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Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.

In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.

You should be aware that there would be a significant cost in making further substantial changes to the CAT thresholds. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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341. To ask the Minister for Finance to provide an update on the recommended replacement scheme for the disabled drivers and disabled passengers scheme; if he will review the current rates of VRT and VAT relief available on adapted vehicles given that the current rates are not in line with the consumer price index; the year those rates were last amended; and if he will make a statement on the matter. [1545/25]

Jack Chambers (Dublin West, Fianna Fail)
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The Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.

However, this is very much a matter for Government as whilst my Department has oversight of the DDS, I do not have responsibility for disability policy.

Under the aegis of the Department of the Taoiseach, a sub-group convened to progress the National Disability Inclusion Strategy (NDIS) proposals for needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, have generated a report that has been submitted to the Department of the Taoiseach, for consideration.

In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.

The Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 (as amended) set out the statutory rules governing the Scheme, including the maximum VRT and VAT relief which it is available in respect of a claim. The relief limits apply across four adaptation categories, and also vary depending on whether a claim relates to a disabled driver, a disabled passenger, or an organisation.

The maximum level of relief for vehicles with adaptions increased in 2015 and two new higher relief categories for vehicles with Specific and Extensive adaptations were introduced at that time. The Scheme was further extended in 2023, with an additional category introduced for adaptions for Wheelchair Accessible Vehicles.

The following table summarises the maximum tax relief available under the four categories:

Relief is restricted to vehicles which have an engine capacity up to 6,000 c.c. except for organisations (five or more disabled persons) once certain criteria are met.

It should be noted that the new VRT charging table does not necessarily result in increased VRT rates. VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. Typically, the new rates structure will result in increases for high emission vehicles, and decreases for lower emission vehicles.

The amount of the remission or repayment of VAT and VRT is decided on the basis of the value and nature of the adaptions made to the vehicle. Accordingly, there are no plans to amend the reliefs at this time.