Vol. 439 No. 7
33 Mrs. T. Ahearn asked the Minister for Finance the amount of revenue raised in 1993 from the probate tax; if he will consider abolishing this tax in the context of fairness and equity; and if he will make a statement on the matter.
60 Mr. Durkan asked the Minister for Finance if he will abolish in full the probate tax in the course of the forthcoming Finance Bill; and if he will make a statement on the matter.
I propose to take Question Nos. 33 and 60 together.
I am advised by the Revenue Commissioners that the yield from the probate tax was £1.7 million in 1993. As I am sure the Deputy is aware, I announced significant changes to the probate tax in the budget. Following careful consideration of the matter, I have decided that spouses are to be completely exempted from probate tax. Moreover, agricultural land and buildings will be reduced in value by 30 per cent for probate tax purposes. Both of these significant new reliefs will be retrospective to the introductiopn of probate tax.
I am satisfied that the provisions of the probate tax strike a fair balance between the need to broaden the base for capital taxation and the need to have regard to ability to pay. It is estimated that, after taking account of the new reliefs, the probate tax will yield about £7 million in a full year. The probate tax, therefore, represents an important element in the capital taxation code, and the Government has no plans to abolish it.
