Vol. 528 No. 2
134 Mr. N. Ahern asked the Minister for Finance if he will clarify the situation in relation to the payment of probate tax; if it is liable in a case where capital acquisitions tax is not due as the house is being left to a family member who qualifies for the exemption; if the exemption extends to probate tax; and if he will make a statement on the matter. [30068/00]
In the budget 2001, I announced that probate tax is being abolished in respect of deaths occurring on or after budget day – 6 December 2000.
In the case of estates where the death occurred before 6 December 2000 and where the probate tax has been paid or has not yet been paid – the following rules apply; The tax is charged at a rate of 2% on the net value of non-exempt assets left by a deceased whether the assets passed under will or intestacy. Estates with a taxable value of £40,000 or less are exempt from the tax.
In relation to a house being left to a family member – there is an exemption in such cases where the beneficiary is a dependent child or dependent relative of the deceased. The house is exempt from probate tax provided the dependent child or relative had been residing in the dwelling house at the death of the deceased and had an income not exceeding the "specified amount" applicable in the tax year prior to the date of death, for the tax year 1999/2000, the specified amount is £5,152. To qualify as a dependent child, the child must have been under the age of 18 years, or if over 18 years, in full time education. To qualify as a dependent relative, the person concerned must have been a relative of the deceased or of the wife or husband of the deceased, who was incapacitated by old age or infirmity from maintaining himself or herself or the widowed father or mother, whether or not he or she was so incapacitated, of the deceased or of the wife or husband of the deceased. The dwelling house relief under capital acquisitions tax is a separate issue as the two taxes are different.
