Vol. 511 No. 6
233 Mr. R. Bruton asked the Minister for Finance the relief available from capital acquisitions tax on inheriting a family home by a brother or sister aged 55 or over and a linear descendent where they have been residing in the home as their sole residence for many years. [24883/99]
The capital acquisitions tax (CAT) code provides special relief for elderly siblings which 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 currently inherit a half share in a house, with a market value of just over £257,000, before any CAT would be due.
An individual, other than a child or certain grandchildren, can avail of the Class II threshold, currently £25,720 for the year 1999, when taking a benefit from a lineal relative. I have undertaken during the 1999 Finance Bill debate to review the CAT system in some detail before the next budget.
