Roderic O'Gorman (Dublin West, Green Party)
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480. To ask the Minister for Finance if the current capital acquisition tax and specifically inheritance tax has been reviewed at any point since 1991 for compliance with the equal status legislation; and if he will make a statement on the matter. [24187/25]

Roderic O'Gorman (Dublin West, Green Party)
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481. To ask the Minister for Finance if the difference in treatment for assessment under current capital acquisition tax and specifically inheritance tax on the basis of whether a person has children breaches the family status ground within equality legislation; and if he will make a statement on the matter. [24188/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 480 and 481 together.

Capital Acquisitions Tax (“CAT”) was first introduced in 1976 and includes gift tax, inheritance tax and discretionary trust tax. When introduced, it presented a significant change from the previous system of ‘death duties’ which imposed a tax on the estate of the deceased. In contrast, CAT is

a beneficiary-based tax on gifts and inheritances that is payable on the value of the property received and is payable on the value above a particular tax-free threshold.

For the purpose of the tax assessment under CAT all beneficiaries have the same Group Thresholds. 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. Above the threshold CAT is payable at 33%.

There are three Group thresholds:

• the Group A threshold (currently €400,000) applies where the beneficiary is a child of the person giving the gift or inheritance.
• the Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance.
• theGroup C threshold (currently €20,000) applies in all other cases.