Nora Owen
Ceist:213 Mrs. Owen asked the Minister for Finance the proposals, if any, he has to increase the limits for brothers or sisters to inherit from their own family members before paying inheritance tax. [15314/99]
Written Answers. - Inheritance Tax.
Under the existing capital acquisitions tax (CAT) code an individual can avail of the Class II threshold, currently £25,720 for the year 1999, when taking a benefit from a lineal relative. In addition, the elderly siblings relief, introduced in 1991 and subsequently increased takes account of the special circumstances of elderly brothers and sisters who live together. The effect of this relief means that the value of an inheritance of a share or all of their family home taken from a sibling can be reduced by 80 per cent or £150,000, whichever is the lesser. Thus an individual, subject to the conditions of the relief being met, could inherit a half share in a house, with a market value of just over £257,000, before any CAT would be due.
This relief is substantial. However, I have undertaken during the Finance Bill, 1999, debate to review the CAT system before the next budget. It is necessary to remember that changes in the CAT area are costly and that they are primarily of benefit to those in receipt of a gift or inheritance and not the general body of taxpayers.