12. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if he will be reviewing the group B and group C thresholds under capital acquisitions tax; and if he will make a statement on the matter. [48383/26]

Sentiment score: 0.01

I raise again the issue of inheritance tax and the anomalies that exist for parents and their children, on one hand, and childless adults, their brothers, sisters, nieces and nephews, on the other.

Sentiment score: 0.49

I have raised this issue on a number of occasions. It is a huge issue and there are anomalies. We need to address this. Currently, children inheriting a family home from their parents are exempted from inheritance tax up to €400,000, which, considering the price of homes currently, is undoubtedly far too low. However, a major anomaly exists when it comes to childless couples and individuals, who often decide to leave their home and assets to their nieces and nephews, brothers and sisters. Unlike children inheriting from parents, nieces, nephews, brothers and sisters are only entitled to €40,000 tax-free, leaving them with a significant tax bill which often precludes these individuals from affording the property. At a time when this country is in the midst of a housing crisis, should we not be doing everything possible to ensure that families are able to afford to keep their homes, instead of penalising those who do not have children and those who are left assets by their uncles and aunts? I call on the Tánaiste, in his capacity as Minister for Finance, to reduce inheritance tax, which is charged at a flat rate of 33% of the value of assets exceeding specific relationship-based tax-free thresholds, and to significantly increase those thresholds, of €400,000 in the case of a son or daughter.

Sentiment score: 0.13

I believe we should separate the limit on the house from any other inheritance. The €40,000 cap in the case of a niece, nephew, brother or sister is absolutely ridiculous and discriminatory. In the upcoming budget, I propose that the Minister increase the €40,000 cap and we separate the house from the inheritance. The bands are less today than they were 15 or 16 years ago, as they were reduced during the recession. If the value of the house and any other assets is over €600,000, a son or daughter is liable for a €66,000 capital acquisition tax on the very same inheritance. A niece, nephew, brother or sister is liable for €184,8000. Our parents, grandparents and their parents before them worked extremely hard and paid their taxes to provide for their families and build family homes. The same applies to our uncles and aunts and their people before them. They too worked extremely hard and paid their taxes. I believe this issue needs to be addressed urgently. It is also a huge issue for the farming community and farm succession. It is a form of double taxation. I have a huge issue with it.

Sentiment score: 0.03