Dáil Éireann debate -
Thursday, 2 Jun 1994

Vol. 443 No. 6

Written Answers. - Inheritance Tax.

Gay Mitchell

Question:

42 Mr. G. Mitchell asked the Minister for Finance if he will have arrangements made with the Revenue Commissioners to waive collection of inheritance tax in the case of a person (details supplied) in Dublin 6W who is unemployed and who, as son-in-law of a woman who left the corporation purchase house jointly to her daughter and son-in-law, instead of solely to her daughter, now finds that he is being assessed to inheritance tax on half the value of the house they have lived in for 23 years.

Minister for Finance (Mr. B. Ahern)

I am informed by the Revenue Commissioners that there is a statutory obligation on persons who receive a taxable inheritance to present a self-assessed tax return to the Commissioners within four months of receiving the inheritance. In computing the taxable value of the inheritance, certain expenses attributable to the inheritance, including for example, the beneficiary's proportion of probate tax and funeral expenses paid, may be deducted. The tax is payable only in respect of the excess above a tax-free threshold. In the case in question, the threshold is £11,600. The relevant legislation allows the Commissioners to deal with cases of hardship and such cases are viewed on their individual merits in the light of all the circumstances of the beneficiary. The Commissioners will give full consideration to the case when the tax return is presented to them.