Dáil Éireann Debate, Tuesday - 6 November 2018
177. Deputy Jack Chambers asked the Minister for Finance the position regarding inheritance tax thresholds in cases in which a niece or nephew is inheriting following Budget 2019; and if he will make a statement on the matter. [44807/18]
View answerFor the purposes of Capital Acquisitions Tax, the relationship between the person who provides the gift or inheritance and the beneficiary determines the threshold, known as the ‘Group threshold’, for the value of gifts or inheritances below which gift or inheritance tax does not arise.
There are three separate Group thresholds based on the relationship of the beneficiary to the disponer. The Group A threshold applies, in general, where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. The Group B threshold applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer. The Group C threshold applies in all other cases.
In Budget 2019, I announced an increase in the CAT Group A threshold from €310,000 to €320,000 in response to particular concerns on the tax burden arising from the inheritance of the family home. In the case of a niece or nephew inheriting, the Group B threshold applies and this was not changed in Budget 2019 and is currently €32,500.
