Dáil Éireann Debate, Tuesday - 15 July 2025
347. Deputy Louis O'Hara asked the Minister for Finance the rationale given by the Minister, or his Department, for the differential treatment of childless individuals under the terms of the capital acquisition tax when compared to individuals with children; whether the Department has any plans to review the arrangements for childless individuals under the capital acquisition tax; and if he will make a statement on the matter. [38800/25]
View answer348. Deputy Shane Moynihan asked the Minister for Finance if he will provide an update on the review of capital acquisitions tax; if threshold disparities for individuals without children are being examined as part of this; and if he will make a statement on the matter. [38908/25]
View answer349. Deputy Barry Heneghan asked the Minister for Finance if he will review the capital acquisitions tax group threshold system in light of concerns raised by individuals without children who are disproportionately affected by current inheritance tax rules, particularly where their closest relationships fall outside group A; and if he will make a statement on the matter. [38918/25]
View answer351. Deputy John Lahart asked the Minister for Finance for an update with regard to the unfair disparity in Ireland’s capital acquisitions tax thresholds, which penalises childless individuals when passing on or receiving an inheritance, the current structure of which excludes many people whose closest relationships fall outside the group A category; whether he is minded to favourably review this from the perspective of those affected; and if he will make a statement on the matter. [38934/25]
View answer352. Deputy Michael Cahill asked the Minister for Finance to urgently address the disparity in Ireland’s capital acquisitions tax thresholds (details supplied); and if he will make a statement on the matter. [38953/25]
View answer356. Deputy Conor D. McGuinness asked the Minister for Finance if he recognises a possible disparity in Ireland’s capital acquisitions tax thresholds, which leaves out childless individuals when passing on or receiving an inheritance (details supplied); and if he will make a statement on the matter. [39049/25]
View answer359. Deputy Pat Buckley asked the Minister for Finance to address the unfair disparity in Ireland’s capital acquisitions tax thresholds, which penalise childless individuals when passing on or receiving an inheritance, as the current structure excludes many people whose closest relationships fall outside the group A category; and if he will make a statement on the matter. [39249/25]
View answer369. Deputy Tom Brabazon asked the Minister for Finance if his Department is considering changes to the capital acquisitions tax which childless adults pay. [39553/25]
View answerI propose to take Questions Nos. 347, 348, 349, 351, 352, 356, 359 and 369 together.
Capital Acquisitions Tax (CAT) is a beneficiary-based tax on gifts and inheritances that is payable on the value of the property received. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
There are three Group thresholds:
* the Group A threshold (currently €400,000) applies where the beneficiary is a child of the person giving the gift or inheritance
* the Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance
* the Group C threshold (currently €20,000) applies in all other cases.
My officials have examined Capital Acquisitions Tax as part of the annual Tax Strategy Group exercise.? The resultant papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. They are published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process
The Tax Strategy Group will meet next week with the relevant papers likely to be published shortly afterwards.
It should be noted that there would be a significant cost in making any further substantial changes to CAT. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
Finally, as the Deputies will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
