Written answers

Tuesday, 8 July 2025

Department of Finance

Tax Code

All Written Answers on 8 Jul 2025 « Previous answer Next answer »

Photo of Michael CahillMichael Cahill (Kerry, Fianna Fail)
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334. To ask the Minister for Finance if he will address the anomaly that exists in regard to inheritance tax in respect of childless couples (details supplied) and bring an end to this very obvious discrimination; and if he will make a statement on the matter. [37564/25]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Capital Acquisitions Tax (CAT) is a beneficiary-based tax on gifts and inheritances that is payable on the value of the property received. 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.

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
  • the Group C threshold (currently €20,000) applies in all other cases.
My officials are examining the matter raised by the Deputy as part of the annual Tax Strategy Group exercise. The resultant papers will outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. They are published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process.

I expect that the Tax Strategy Group will meet in mid July, with the relevant papers published very shortly afterwards.

Finally, it is important to be aware that changes to CAT bear significant costs and must be considered in the context of available resources and must also be balanced against competing demands.

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