Saturday 15 December 2018

Children will be able to inherit a little more from their parents

Inheritance Tax

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Charlie Weston

Charlie Weston

PARENTS will be able to leave more to their children without the offspring having to pay tax.

The tax-free threshold for a child receiving a gift from their parents will go to €320,000, up from €310,000.

Known as Capital Acquisitions Tax, a rate of 33pc is applied on gifts and inheritances above the threshold.

Minister Paschal Donohoe told the Dáil: "I recognise that there are concerns about the potential tax burden, in particular on the inheritance of the family home. Therefore, I have decided to increase the lifetime Group A tax-free threshold which broadly applies to transfers between parents and their children from €310,000 to €320,000."

Partner in KPMG Private Client Services Robert Dowley said that with property prices recovering, the threshold remains well below what a child might require to inherit property from a parent tax-free: "A child inheriting a property worth €380,000 will pay €20,000 more in 2019 compared to an inheritance of equivalent value in early 2009."

There was no reduction in the exit tax on life assurance policies. Insurance Ireland said this was a missed opportunity.

It said life insurance customers are mostly middle-income individuals.

Irish Independent

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