Cathal Crowe (Clare, Fianna Fail)
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564. To ask the Minister for Finance if he will consider introducing a waiver to gift and inheritance tax incurred in circumstances where someone dies while owning a home with their partner, to whom they are not married (details supplied); to waive the tax from the surviving partner; and if he will make a statement on the matter. [18893/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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For Capital Acquisitions Tax (CAT) purposes, the relationship between the disponer (i.e., the person who provides the gift or inheritance) and the beneficiary determines the maximum amount, known as the Group threshold, below which CAT does not arise. Any prior gift or inheritance received by a beneficiary since 5 December 1991 within the same Group threshold is aggregated for the purposes of determining whether any tax is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant Group threshold, CAT applies at a rate of 33% on the excess amount.

In the case of a surviving cohabitant who is not related to the disponer, as is the case in the material provided, the relevant tax-free threshold is the Group C threshold. The Group C threshold that applied on 25 August 2024 was €16,250. It has since been increased to €20,000.

The Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for a number of exemptions wherein no charge to CAT arises in respect of certain types of gifts and inheritances if certain conditions are met. For example, section 86 CATCA 2003 provides for an exemption from CAT on the inheritance of a dwelling house. To qualify for the exemption, the beneficiary (in this case the surviving cohabitant) must not have a beneficial interest in any other dwelling house at the date of the inheritance.

Additionally, the inherited property must have been the disponer’s (in this case the deceased person’s) principal private residence at the date of their death and the beneficiary must have lived in the property for 3 years prior to the date of inheritance. The beneficiary must continue to live in the property for 6 years after that date. Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/dwelling-house/index.aspx.

Based on the information provided, I am advised by Revenue that this exemption may be available to the beneficiary in this case.

Where a person has a CAT liability in respect of a dwelling house, they have a statutory entitlement to pay the liability by monthly instalments. The instalments can be paid over a period of up to 5 years and are subject to the payment of interest at an annual rate of 8%. Revenue may allow payment of CAT by instalments over a longer period of time on a concessionary basis in exceptional circumstances where the tax cannot be paid without excess hardship.

In addition, in cases of hardship, Revenue has discretion under section 59 CATCA 2003 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.

The beneficiary in this case may wish to make direct contact with Revenue's National CAT Unit. Contact details for the National CAT Unit are available on the Revenue website at www.revenue.ie/en/contact-us/customer-service-contact/national-capital-acquisitions-tax-cat-unit.aspx.