Dáil Éireann Debate, Wednesday - 2 February 2005
228 Mr. Cregan asked the Minister for Finance the situation in relation to liability to inheritance tax on a house transferred on death from parents to an adult child; if he will provide the thresholds; if a child is liable for the balance over the threshold; if the threshold refers to the amount received from each parent or both; and if he will make a statement on the matter. [3158/05]
View answerFor the purpose of gift and inheritance tax, the relationship between the person who provided the gift or inheritance, that is, the disponer, and the person who received the gift or inheritance, that is, the beneficiary, determines the maximum tax-free threshold, known as the "group threshold". There are three group thresholds based on the relationship of the beneficiary to the disponer and these group thresholds are indexed annually by reference to the consumer price index. The indexed group threshold applying to a gift or inheritance received by a child from their parents is the group A threshold which, for 2005, is €466,725. This threshold refers to the amount received from both parents and is not a separate threshold from each parent.
Any other gifts or inheritances that might have been received by the beneficiary from within the same group A threshold, that is, from parents, since 5 December 1991 will also be taken into account when applying the threshold for the purposes of calculating the gift or inheritance tax. If the total value of all gifts and inheritances received by the beneficiary since this date from within this group is above the threshold figure of €466,725, then a 20% rate of gift or inheritance tax will apply on the difference.
In this case, if the parents leave a house worth €500,000 to their daughter by way of two separate inheritances, inheritance tax would not arise until the daughter received the second 50% of the house, because she would only then exceed her tax-free threshold and inheritance tax would only arise on the sum exceeding the threshold outlined above.
The Deputy may wish to note that the Finance Act 2000 introduced an exemption from CAT for the recipient of a dwelling-house where the dwelling-house is taken by way of a gift or inheritance provided certain conditions are satisfied. Essentially, CAT no longer applies in respect of a gift or inheritance of a dwelling-house taken on or after 1 December 1999, provided the recipient of the gift or inheritance had been living in the house for three years prior to the gift or inheritance and does not have an interest in any other residential property. Also, the recipient must continue, except where he or she is aged 55 years at the date of the gift or inheritance, to occupy that dwelling house as his or her only or main residence for a period of six years from the date of the gift or inheritance. This exemption ensures that what may be the family home for many people will not be the subject of gift or inheritance tax where the conditions for this relief are met.
229 Mr. Cregan asked the Minister for Finance the situation in relation to the necessity to have parking bays available at hospitals for disabled drivers and if tax relief against such costs when receipts are available can be allowed to be claimed by such a person of a member of their family. [3159/05]
View answerThe question of the provision of parking spaces for disabled drivers at hospitals is matter for the Minister for Health and Children.
With regard to claims for tax relief against the cost of parking at hospitals, there is currently no provision in tax law which would allow relief from income tax in respect of parking expenses incurred by persons with or without a disability. There are no plans to change this at present.
