Monday 20 November 2017

Inheritance tax change 'doesn't go far enough'

A child inheriting a home worth €300,000 from a parent will still have a tax liability of €6,600.
A child inheriting a home worth €300,000 from a parent will still have a tax liability of €6,600.
Charlie Weston

Charlie Weston

CHANGES to the inheritance tax regime were welcomed, but a number of groups said the alterations did not go far enough.

The rate of the tax stays at 33pc, but Finance Minister Michael Noonan widened the tax-free threshold for gifts made by parents to children to €280,000.

This is up from €225,000, and the new threshold applies from gifts or inheritances from now on.

But experts said the move did not go far enough.

This country has one of the toughest inheritance tax regimes in the western world.

Susan Murphy of MakeMyWill solicitors said it was a "lacklustre" change.

She pointed out that the threshold had been at €542,544 in 2009, while the rate of the tax has risen from 20pc in 2008 to 33pc at present. "The Government could have gone a little further," Ms Murphy said.

Despite the changes, a child inheriting a home worth €300,000 from a parent will still have a tax liability of €6,600.

Director of tax with KPMG Ireland Thalia O'Toole said the increase in the threshold was welcome but did not go far enough for those inheriting property in urban areas, who would still face chunky tax bills.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business