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Tax Code.

Dáil Éireann Debate, Thursday - 9 December 2004

Thursday, 9 December 2004

Ceisteanna (148, 149)

Bernard J. Durkan

Ceist:

145 Mr. Durkan asked the Minister for Finance if CAT, inheritance or other taxes are payable on the inheritance of a nephew or niece who has lived in the same dwelling as the disponer for more then 20 years and where the beneficiary is an old age pensioner; and if he will make a statement on the matter. [32919/04]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Minister for Finance)

Section 151 of the Finance Act 2000 introduced an exemption from capital acquisitions tax, CAT, for certain dwelling houses. The purpose of this exemption was to benefit individuals who had been living in a house for a period prior to taking the benefit, either by way of gift or inheritance.

The main conditions attaching to the exemption are that the beneficiary of the dwelling house must have resided in the house for a minimum of three years prior to the gift or inheritance and must not have had an interest in any other dwelling house. In addition, the recipient must continue, except where he or she is aged 55 years at the date of the gift or inheritance, or has died, to occupy that dwelling house as his-her only or main residence for a period of six years commencing on the date of the gift or inheritance. This exemption ensures that what may be the family home for many people will not be the subject of CAT when it is the subject of a gift or inheritance.

In the present case, it would appear that the nephew or niece has resided in the dwelling house for over three years and is over 55 years and, therefore, an inheritance of the dwelling house taken by the nephew or niece will be exempt from CAT once the nephew or niece had no interest in any other dwelling house.

Eamon Gilmore

Ceist:

146 Mr. Gilmore asked the Minister for Finance if, in the light of the successful redesign of the VAT 3 return form, he will include the option of payment by single debit authority; and if he will arrange for the redesign of the monthly P30 form for payment of income tax, social insurance contributions and levies to include an option for payment by single debit authority, thereby facilitating the making and collection of such payments. [32951/04]

Amharc ar fhreagra

I am advised by the Revenue Commissioners that it is their policy to make available a wide range of electronic payment options for the payment of tax, including fixed amount direct debit, electronic payments options through the Revenue on-line system, ROS, and single debit authority. Single debit authority allows a taxpayer/business to nominate the bank account to be debited for the single amount specified on the debit instruction attached to the tax return. The option to pay VAT by means of single debit authority has been available since early 2004 and the option was continued on to the redesigned VAT 3 that was introduced in September 2004.

It is planned to introduce single debit authority as a payment option for the payment of the P30 monthly employers PAYE/PRSI at the earliest opportunity. However, in view of the development priorities already scheduled by the Revenue Commissioners for 2005, the earliest opportunity to introduce single debit authority for P30 payments is early 2006.

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