asked the Minister for Finance if he will consider the advisability of remitting estate duty to encourage the very necessary inflow of capital which this country so badly needs.
Ceisteanna—Questions. Oral Answers. - Remitting of Estate Duty.
43.
The argument that the reduction or abolition of death duties would encourage an inflow of foreign capital for investment in this country is one to which I have given considerable attention. It is dealt with in paragraph 79 of the First White Paper on Direct Taxation (pr. 5952) published in April, 1961.
Recent legislation has afforded considerable relief in relation to death duties. The Finance Act, 1960, raised the exemption limit from £2,000 to £5,000. The Finance Act, 1961, reduced the rates of estate duty on estates between £5,000 and £8,000 and, in the case of estates in excess of £100,000, established a uniform rate of 40 per cent in place of the previous rates which proceeded to a maximum of 53 per cent.
Under the Finance Act, 1956, the value of a considerable range of Irish industrial securities is reduced by one-third for estate duty purposes where the deceased dies domiciled in the State. Stock of certain National Loans is accepted at its nominal value in payment of death duties although the market value at date of death may be below the nominal value. Furthermore, stock of National Loans is exempt from death duties if in the beneficial ownership of a person who is neither domiciled nor ordinarily resident in the State.