Dáil Éireann debate -
Tuesday, 7 Nov 1995

Vol. 457 No. 7

Written Answers. - Inheritance Tax.

Michael Bell

Question:

92 Mr. Bell asked the Minister for Finance if he will review the case of a person (details supplied) in County Louth who was willed her grandmother's house in view of the fact that this person is a minor and lives with her parents at the same address, has no income and both of whose parents are unemployed and has been advised that the tax will be £3,545.20 which she will be unable to pay at the rate of 1.25 per cent even on an instalment basis; if he will have arrangements made to have the tax waived or substantially reduced; and if he will make a statement on the matter. [16393/95]

Minister for Finance (Mr. Quinn):

There is a statutory obligation on persons who receive a taxable inheritance to present a self-assessed tax return to the Revenue Commissioners within four months of receiving the inheritance. In computing the taxable value of the inheritance, certain expenses attributable to it, including, for example, the beneficiary's proportion of probate tax paid, may be deducted. The tax is payable on the inheritance only in respect of the excess above a tax-free threshold. In this case, provided that the beneficiary has not received any prior inheritances or gifts from any source, the current threshold is £23,760. 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. In that regard, the Commissioners will give full consideration to the case when the tax return is presented to them.