Barry Ward (Dún Laoghaire, Fine Gael)
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273. To ask the Minister for Finance the position regarding any review or research being carried out by his Department into inheritance tax parameters; if the existing relationship category thresholds can be reviewed; and if he will make a statement on the matter. [13310/25]

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.

While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. 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 must be balanced against competing demands, and as part of the annual Budget and Finance Bill process. However, as with all tax matters, my Department will consider Capital Acquisitions Tax exemption levels and related group thresholds throughout this process.