I again raise the issue of inheritance tax and the anomalies that exist for parents and their children on the one hand, and childless adults, their brothers, sisters, nieces and nephews on the other hand. Currently children inheriting a family home from their parents are exempted from tax on inheritances of 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, 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 families are able to afford to keep homes instead of penalising those who do not have children and those who are left assets by their uncles and aunts? Tonight I am calling on the Tánaiste and Minister for Finance to reduce inheritance tax which is charged at a flat rate of 33% on the value of assets exceeding specific relationship-based tax-free thresholds and to significantly increase these thresholds of €400,000 to €800,000 in the case of a son or daughter and furthermore, to separate the limit on the house that I proposed, the €800,000, 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 for Finance increase the €40,000 cap up to €250,000 on a house and again separate it from any other inheritance. These bands are less today than there were 15 or 16 years ago when they were reduced during the recession. If the value of the house and any other assets is €600,000, a son or daughter is liable for €66,000 in capital acquisition tax, or inheritance tax as it is known. On the very same inheritance a niece, nephew, brother or sister is liable for €184,800. Our parents, our grandparents and their parents before them worked extremely hard to provide for their families and build a family home. The same applies to our uncles and aunts and their people before them. They too worked extremely hard to build a family home and paid all their taxes I may add. Sadly, today in certain cases individuals are turning down inheritance as they simply cannot afford to pay the taxes. This issue needs to be addressed in the coming budget and successive budgets. It is obvious families and individuals are being taxed on the double. I call on the Government again tonight to urgently address another anomaly that exists with the current taxation system in respect of capital acquisition tax when applied to partners as opposed to married couples. Current legislation means a partner, even a lifetime partner, is regarded as a stranger for capital acquisition tax purposes and therefore the current threshold limit of €20,000 applies, with anything over that amount taxed at 33%, whereas married couples are exempted from that tax. Current legislation discriminates against partners. Partners are now entitled to a survivor's pension if they have been living together for at least five years or two years if they have children. This arose from a court case where it was found that to deny them survivor’s pension would be unconstitutional. In another recent case, a civil servant passed away and his partner was refused the widow’s portion of his Civil Service pension as they were not married and this was also found to be unconstitutional.

Sentiment score: 0.07

I thank the Minister of State for his detailed response. I mentioned the case of the civil servant who passed away. His partner was refused the widow's portion of his civil servant pension as they were not married. This was also found to be unconstitutional. Contrast this with the current taxation system where partners are treated as strangers for capital acquisition tax purposes. This is wide open to a constitutional challenge to the current legislation. Obviously, I am aware that during the past week, the State secured a Supreme Court appeal against the judge's ruling that it breached the Constitution when it refused a spouse's pension to a man who had lived with his late partner. There are anomalies in the current taxation system. Where a partner makes a gift to his or her partner, this will give rise to both capital gains tax and a gift tax. If they were married, however, there would be no tax. The tax rate bands for married couples differ from those for partners living together. This needs to be urgently addressed, and it is a matter for the Minister for Finance, Deputy Harris, to do so. The current legislation must be amended as soon as possible. I referenced and made a couple of proposals in this regard. The current cap of €400,000 should be increased to €800,000 on the home and separated from any other inheritance. Equally, the €40,000 cap for a niece or nephew or brother or sister should be increased to €250,000. We should also be looking at the 33% tax on the value of assets exceeding the specific, relationship-based tax-free thresholds. Those thresholds should be significantly increased, as I have already stated.

Sentiment score: 0.14