Thursday 23 February 2017

Inheritance tax plan to victimise childless families

Siblings will not benefit from new higher threshold

Kevin Doyle

Kevin Doyle

Finance Minister Michael Noonan intends to raise the value of property that parents can leave to their children without paying tax – but will not offer any relief to other relatives. Photo: Tom Burke
Finance Minister Michael Noonan intends to raise the value of property that parents can leave to their children without paying tax – but will not offer any relief to other relatives. Photo: Tom Burke

Childless families will lose out as a result of changes to the inheritance tax regime planned for Budget 2017.

Finance Minister Michael Noonan intends to raise the value of property that parents can leave to their children without paying tax - but will not offer any relief to other relatives.

The plan is causing considerable disquiet within Fianna Fáil, with rural TDs in particular telling their finance spokesperson Michael McGrath to make "a big push" to have the rights of siblings recognised.

The Irish Independent understands that Mr Noonan intends to increase the current inheritance tax threshold from €280,000 to at least €320,000.

However, assets left to a sibling, nephew, niece or grandchild will face Capital Acquisitions Tax at a rate of 33pc once the value of the assets bequeathed exceeds just €30,150.

Meanwhile, Social Protection Minister Leo Varadkar has warned that too much focus on a €5 pension hike could result in the disabled, carers and other vulnerable sections of society missing out.

Irish Independent

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