The Government is conscious of the difficulties which can arise for cohabiting couples in certain circumstances and, because of this, an interdepartmental working group was set up under the Department of Social, Community and Family Affairs to examine the treatment of married, cohabiting and one-parent households under the tax and social welfare codes. This group has recently published its report and was, as a whole, sympathetic in principle, to changes in tax legislation to address certain issues relating to cohabiting couples. In this regard the report of the group outlines a number of options relating to cohabiting couples for the Government to consider in the context of the forthcoming budget 2000 deliberations.
On the specific issue of the treatment of cohabiting couples within the capital acquisitions tax code, I indicated to the Dáil, earlier in the year in the course of the Finance Bill debate, that I appreciate the concerns which have been raised. I am aware of the tax burden facing certain individuals, particularly on the inheritance of the family home. At that stage, I undertook in the Dáil that prior to the next budget, I would examine the capital acquisitions tax code in some detail. This examination is currently taking place.