Dáil Éireann díospóireacht -
Thursday, 12 Mar 1992

Vol. 417 No. 3

Written Answers. - Inheritance Tax.

Bernard J. Durkan

Ceist:

50 Mr. Durkan asked the Minister for Finance if he will give details of the amount of any inheritance tax payable on a building site on agricultural land given as a gift to a person, who is not a relative, on which to build his own home and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

I am informed by the Revenue Commissioners that the amount of capital acquisitions tax payable on a gift is a function of the value of the property gifted, the aggregation, where relevant, of prior benefits taken by the beneficiary and the relationship of the disponer to the beneficiary. In the absence of full details of prior benefits and of the value of the property in question, it is not possible to state the actual liability, if any, which might arise.

The current threshold for purposes of a benefit taken from a stranger is £11,090. Where this threshold is exceeded, the following rates of capital acquisitions tax apply to the excess:

First £10,000 over threshold	—20 per cent
next £40,000	—30 per cent
next £50,000	—35 per cent
balance	—40 per cent

Where the benefit is taken by way of gift as opposed to inheritance, the liability to capital acquisitions tax is calculated at 75 per cent of the above rates. In addition the first £500 of the taxable value of a gift is exempt from tax.