Interesting article on RTE today – https://www.rte.ie/news/ireland/2022/0912/1321999-inheritance-tax-latest/
It seems that whilst the Commission on Taxation & Welfare recommends a dramatic reduction in the already reduced individual threshold at which someone can inherit assets without having to pay inheritance tax, politicians aren’t champing at the bit to implement it.
Under current Capital Acquisition Tax rules (Of which Inheritance tax is one), a child can inherit €335,000 from their parents before they pay tax on the balance at 33%.
It wasn’t that long ago, that a total of €542,544 could be inherited or gifted before paying tax at 22%. Given that the family home is the main and most common target here and with property prices having reached their previous peaks from 2008 / 2009, this would seem like easy pickings for the Revenue, but as Minister of State for Overseas Development and Diaspora Colm Brophy is quoted as saying “picking on people who inherit the family home that their parents have already paid tax on is wrong.” This would suggest that there is a moral or emotional element to some Revenue decisions. The jury is out on that here!
People who work all their lives to put a home over their heads and provide for their family should not be punished for their hard work when they wish, at the time of their choosing or indeed their passing, to provide their children with something to help secure their futureFine Gael deputies Neale Richmond, Bernard Durkan and Senator Maria Byrne.
Anyway, if you’d like to have a chat about how to prepare for this inevitable inheritance tax to ease the burden on your children, particularly as it may be a moveable feast for the RC, then please get in touch here.