Dáil Éireann debate -
Wednesday, 30 Jan 2002

Vol. 547 No. 1

Written Answers. - Capital Acquisitions Tax.

Richard Bruton

Question:

453 Mr. R. Bruton asked the Minister for Finance if he will consider introducing a concession along the lines of a favoured relative clause under which a person who has contributed to the operation of a business for many years may get capital acquisitions tax concessions, to apply in the situation where a particular relative has assisted in the care of an incapacitated person for many years in order that such a carer could get some concessions as a favoured relative when it comes to deciding the capital acquisitions tax to apply on an inheritance from the person who received the care; and if he will make a statement on the matter. [2794/02]

Minister for Finance (Mr. McCreevy)

There is no specific CAT relief or exemption where a person takes an inheritance from a relative for whom they had cared. The Deputy refers to a concession along the lines of a favourite relative relief where the beneficiary has contributed to the operation of a business for a number of years. Favourite nephew or niece relief is available only to certain nephews and nieces who take a gift or inheritance of a business from the disponer. This relief is not available to other relatives, such as a cousin or nephew-in-law. In order to qualify the beneficiary must have worked substantially on a full-time basis for the disponer for a minimum of five years ending on the date of the gift or inheritance. If the criteria are met the beneficiary is entitled to the tax free threshold of a child of the disponer, currently 422,148.

If favourite nephew or niece relief is not available, a nephew or niece in receipt of an inheritance from an uncle or aunt is entitled to the group B threshold which is currently 42,215. This threshold may also apply in the case of the relative referred to by the Deputy. I have no plans to change the existing legislative provisions in this area.