Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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260. To ask the Minister for Finance his plans to increase the current thresholds for inheritance tax; and if he will index link same to keep in line with inflation. [2535/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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 substantial changes to the CAT thresholds. The options available for setting CAT thresholds or introducing an index link must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.