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Parent-to-children inheritance tax threshold to increase by €10,000

The tax-free threshold is to increase from €310,000 to €320,000

MINISTER FOR FINANCE Paschal Donohoe has announced a €10,000 increase in the inheritance tax threshold from parents to children. 

Speaking before the Dáil, Donohoe said that he has 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. 

Capital Acquisitions Tax is a tax on gifts and inheritances. 

People can receive gifts and inheritances up to a set value over their lifetime before having to pay CAT. 

The amount that a person might have to pay out depends on the relationship between the person inheriting and the deceased.

A spouse or civil partner is required to pay no tax.

For all other beneficiaries, a tax-free threshold amount is afforded, after which Capital Acquisitions Tax has to be paid.

Sons and daughters receive the largest tax-free amount. The second group is made up of parents, brothers, sisters, nieces, nephews and grandchildren and the third group includes any other type of relation.

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26 Comments
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    Mute Mari
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    Oct 9th 2018, 2:13 PM

    Disgracefull..parents spent a lifetime paying fr their house and paid hefty tax on the purchase add 25 yrs of property tax on same house…they own it fair and square..why should their off spring be further taxed fr same house..

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    Mute Hellenize Dublin
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    Oct 9th 2018, 2:52 PM

    @Mari: two reasons; socialism or government greed

    Both should eradicated.

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    Mute Quentin Moriarty
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    Oct 9th 2018, 3:49 PM

    @Hellenize Dublin: I hope the government try and come after Emma Ni Mathuna kids for inheritance tax so that the whole unfairness and greed aspect to the tax comes into the public forum

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    Mute SC
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    Oct 10th 2018, 6:20 AM

    @Mari: Because the price of their assets increased so much since they bought them. My parents’ house increased from £35000 to €700000. They did not earn the extra €650000. It was arguably due to the public investment in the area-wide they have a bus service now for example.

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    Mute Sarah Clifford
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    Oct 10th 2018, 8:21 AM

    @SC: ridiculous argument if the house devalued would they get the differential and your not factoring in inflation. This legalised robbery should be put to an end.

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    Mute Philip Morgan
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    Oct 9th 2018, 2:07 PM

    So you can work your hole life paying tax, you save it and are taxed again, then you want to leave a few bon to your kids and there taxed again ……. Hardly fair

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    Mute D H
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    Oct 9th 2018, 2:33 PM

    @Philip Morgan: There should be no inheritence tax. Its just greed on the governments part to tax a second time on assets that they already took a cut out of

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    Mute Stoneybroke
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    Oct 9th 2018, 2:17 PM

    Absolute joke. I am completely opposed to inheritance tax full stop. In 2009 you could inherit up to 542k tax free. House prices are almost the same ridiculous price now as they were back then .There should be no inheritance tax on any house under 500k in the current market. It’s forcing families to sell the home to pay the tax.

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    Mute John Judd
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    Oct 9th 2018, 2:08 PM

    What about property, most houses in Dublin are worth more than €320k , ?

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    Mute Clairy Rooney
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    Oct 9th 2018, 2:24 PM

    @John Judd: From what I understand (and I might be mistaken…) if the house is over €320k you’re liable to pay tax on the difference so for example say the house was €400k, you (the child/ren) would be liable to pay inheritance tax on the €80k difference between €320k and €400k. I have heard of some families having to sell the parent’s property to pay the inheritance tax…which is likely to still be a route most will need to go down unless they can pay the 30% odd inheritance tax on the difference… It’s a joke really.

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    Mute Sean
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    Oct 9th 2018, 8:39 PM

    @Clairy Rooney: yes you’re correct in what you say. The one thing you’ve left out is that the tax has to be paid pretty much immediately so this does in many cases force the sale. The Revenue doesn’t like to kept waiting – unless you are Apple of course in which case they will ask you not to pay the tax and then the Government will pay lawyers millions to find reasons why you mightn’t really need to pay it.

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    Mute Thomas Linehan
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    Oct 9th 2018, 11:56 PM

    @Clairy Rooney: if you have 3 children for example its 320 thousand each tax free before C G comesin

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    Mute GerryCummins
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    Oct 10th 2018, 7:54 PM

    @Clairy Rooney: correct! You have until 31st October of the year following death to pay, curiously mid November if you pay and file online. 33%on everything inherited over 310,000 (320,000 since budget yesterday). That is per child, if you are an only child, you are on your own with the 310,000.

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    Mute Peter White
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    Oct 9th 2018, 2:56 PM

    Try be single and lave it to a sibling or nephew/niece. Govt absolutely love to discriminate against singles

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    Mute GerryCummins
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    Oct 10th 2018, 7:54 PM

    @Peter White: you can give them tax free amounts annually….

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    Mute Dave.
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    Oct 9th 2018, 2:13 PM

    Bloody disgrace the goverment should keep there grubby paws off. Tax has been already paid on these assets, it’s double, triple taxation. A tax on dying if you ask me.

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    Mute GerryCummins
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    Oct 10th 2018, 7:55 PM

    @Dave.: but not by the person inheriting the “asset/s”.

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    Mute Neil Mac
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    Oct 9th 2018, 2:55 PM

    The inheritance tax is just utterly disgusting!

    118
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    Mute James O'Brien
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    Oct 9th 2018, 3:02 PM

    Taxing there dead in some cases. Would make you sick

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    Mute Otranto
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    Oct 9th 2018, 5:56 PM

    Property/Death tax.
    How did the government pull this stroke so easily?

    39
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    Mute GerryCummins
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    Oct 9th 2018, 2:12 PM

    Not worth a shite. Jebus help you if you are an only child. At leat with a few siblings everyone will get the 320k allowance each…

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    Mute Stoneybroke
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    Oct 9th 2018, 2:18 PM

    @GerryCummins: I’m an only child and will have to sell the family home as I will not be able to pay the death tax .

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    Mute Dan
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    Oct 9th 2018, 2:21 PM

    @Stoneybroke: happens in London and the bug cities…average wage earners have to sell house to pay tax…they move out….basically core staff find it hard to live in the bigger cities over time

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    Mute Patricia Morris
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    Oct 9th 2018, 5:33 PM

    @Stoneybroke: Inheritance Tax to me seems to be the ultimate in inequality!!!!! Work all your life pay taxes. Borrow and buy or build a home with AFTER TAX INCOME!!! Pay VAT On labour and materials, if you build your own home, or on the house price if you buy!!! STAMP DUTY for conveyance!!!! VAT on socicitors fees!!!! There are probably ithers that I’m forgetting. Finally it’s all paid, you are reasonably well off, but on that same house you are paying PROPERTY TAX!!! and VAT on repairs and maintenance!!! GOVERNMENT LEVIES on insuring the said house!!!! And finally you die and pass it in to a son or daughter and more tax is extracted!!! With a miserable threshold if €320K. Please Minister for Finance join the real world !!!!!
    P M.

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    Mute Patricia Morris
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    Oct 9th 2018, 5:34 PM

    @Stoneybroke: Inheritance Tax to me seems to be the ultimate in inequality!!!!! Work all your life pay taxes. Borrow and buy or build a home with AFTER TAX INCOME!!! Pay VAT On labour and materials, if you build your own home, or on the house price if you buy!!! STAMP DUTY for conveyance!!!! VAT on socicitors fees!!!! There are probably ithers that I’m forgetting. Finally it’s all paid, you are reasonably well off, but on that same house you are paying PROPERTY TAX!!! and VAT on repairs and maintenance!!! GOVERNMENT LEVIES on insuring the said house!!!! And finally you die and pass it in to a son or daughter and more tax is extracted!!! With a miserable threshold if €320K. Please Minister for Finance join the real world !!!!!
    Patricia Morris

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    Mute GerryCummins
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    Oct 10th 2018, 7:58 PM

    @Stoneybroke: only child too…. if you live in the house ,or can prove it is your main residence, and you dont own any other property, the house is exempt from your inheritance tax but you must live in it for 6 years after the death before sale. If you are over 65 you are exempt also.

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