Dáil Éireann debate -
Tuesday, 20 Feb 2001

Vol. 530 No. 6

Written Answers. - Probate Tax.

David Stanton

Question:

182 Mr. Stanton asked the Minister for Finance the amount of probate tax collected each year since its inception; the people who are affected by the tax; his plans in this regard; and if he will make a statement on the matter. [4476/01]

Minister for Finance (Mr. McCreevy)

The yield from probate tax since its introduction in 1993 is as follows:

Year	Yield
1993	£1.7 million
1994	£9.6 million
1995	£12.3 million
1996	£14.4 million
1997	£17.0 million
1998	£19.7 million
1999	£24.9 million
2000	£29.5 million

In the budget for 2001 I abolished probate tax in respect of deaths occurring on or after budget day – 6 December 2000.

In the case of probate tax arising on estates where the death occurred before 6 December 2000, 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. A total exemption from probate tax is available where property passes to a spouse and where jointly owned property passes automatically from one joint owner to another joint owner. In addition, the share of the family home passing to dependent children or dependent relatives of the deceased is exempt subject to certain conditions. There are other exemptions for pension benefits, charitable bequests, heritage property and the proceeds of section 60 insurance policies which are used to pay inheritance tax/ probate tax. Agricultural land and buildings may also be reduced in value by 30% for probate tax purposes. There is also provision in the legislation for deferral of the tax by the Revenue Commissioners in cases of hardship or where the estate is illiquid.