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DURING THE RECENT Budget, the inheritance tax threshold was hiked up significantly in what was the first major change in five years.
Making the announcement in the Budget speech, Finance Minister Jack Chambers said it was “appropriate” to make the first increase in the rate since 2019 given the increase in property values since then.
Inheritance tax, technically known as the Capital Acquisitions Tax, is a tax of 33% on gifts and inheritances which kicks in at a particular limit.
It does not have to be paid if the inheritance does not reach this limit.
Inheritance from a parent to a child (including adopted or stepchildren) is counted as a “Group A” inheritance.
Within this group, the inheritance tax limit increased from €335,000 to €400,000.
Close to 97% of people will be unaffected by this tax change.
The Group B category limits also increased from €32,500 to €40,000 – this category includes siblings and nieces or nephews.
Within the third, Group C category – which is any relationship not covered by the first two categories – the threshold was increased from €16,250 to €20,000.
So with political parties making all types of pledges and promises in the run up to the general election, have they been saying anything on inheritance tax?
In its manifesto, Fine Gael said it “acknowledges the principle of inheritance tax but recognises that the burden of capital taxation has increased significantly over the past 15 years”.
The party said Ireland generates “above-average revenue from inheritance and gift taxes” and added that “recent fiscal drag has further cut the thresholds in real terms”.
The party has pledged to “build on progress made in Budget 2025” by increasing the inheritance tax threshold by raising the Group A threshold to €500,000, Group B to €75,000, and Group C to €50,000.
A spokesperson for Fine Gael told The Journal that the party is also “committed to reviewing the composition of the groups where the deceased does not have children”.
“In contrast, Fianna Fáil give few clear commitments in relation to their inheritance tax reforms,” said the spokesperson.
“While Sinn Fein commits to reforming Capital Acquisitions Tax as a revenue raising measure.”
Meanwhile, a Fianna Fáil spokesperson said the party “understands the imposition on people who inherit homes or farms due to the current threshold for inheritance tax”.
In a statement to The Journal, a spokesperson said inheritance tax rates “need to take property values into account”.
While the party noted increases in Budget 2025, it added that the “current thresholds are still lower than what they were in 2008”.
Inheritance tax is a tax of 33% on gifts and inheritances which kicks in at a particular limit, and Tánaiste and Fianna Fáil leader Micheál is in favour of reducing this rate from 33% to 25%.
The spokesperson added that the party is “conscious too of the very low thresholds when the deceased is childless” and will review this threshold – this Group C threshold is currently €20,000.
While no figures have been provided, Fianna Fáil’s manifesto pledges to “increase and adjust the inheritance tax thresholds in each budget to reflect the wider increase in property prices in the Irish economy in recent years”.
A spokesperson for Sinn Féin told The Journal that the party believes in a “tax system that is fair” and remarked that inheritance tax is an “important tool to tackle inequality and invest in public services to deliver a fair society”.
The party would revert the inheritance tax thresholds to pre-Budget 2025 levels and increase the rate from 33% to 36% – Sinn Féin say this would raise €143 million annually.
“We believe that people’s family homes are not the same as other forms of wealth – and shouldn’t be treated in the same way,” said the spokesperson.
“This is why we oppose the local property tax on family homes – and why we outlined our plan explaining how that could be abolished.”
Alan Shatter is a former Fine Gael TD and previously served, simultaneously, as Minister for Justice and Minister for Defence.
He is contesting the general election as an independent candidate in Dublin Rathdown and is chair of the Inheritance Tax Reform Campaign.
Shatter held public meetings and ran a campaign in the run up to Budget 2025 calling for an end to inheritance tax, which he claims is a “jealousy or resentment tax”.
In a statement to The Journal, he further described inheritance tax as “state sponsored grave robbery and double taxation”.
He added that it “forces the sale of modest sized homes that could provide home security for a bereaved child or grandchild and their family”.
Shatter said Sinn Féin’s “opposition to the property tax on homes while favouring the forced sale of homes to pay increased inheritance tax is bereft of any logical insight”.
Meanwhile, he noted that both Fine Gael and Fianna Fáil intend to retain the tax.
“Fine Gael has recycled an unimplemented promise first made during the 2016 general election that lacks any time frame for implementation,” said Shatter.
He added that Fianna Fáil has a “number of meaningless promises, including a pledge at some unspecified date to reduce the tax rate to 25%”.
“Should all their promises be implemented, the tax will still remain more draconian than it was 16 years ago, when the rate was 20%, and taking account of both the increase in the consumer price index and property values, the thresholds were higher.”
He added: “For example, up to 2008 a child could inherit a home from a parent up to a value of €542,000 without any inheritance tax hit”.
That sum would be equivalent to around €675,000 today, according to the Central Statistics Office.
“None of the Dáil parties yet get the extent of the public anger the tax generates,” said Shatter, “it should be abolished.”
Meanwhile, the Green Party said in a statement to The Journal that it would “prioritise increasing income tax bands and income tax credits to ensure the largest number of people possible benefit from any money that is set aside for tax reduction”.
In its manifesto, the party says it will exclude “wealthy farmers and business owners from agricultural and business relief”.
“Agricultural and Business relief from inheritance tax subsidised fewer than 2,500 people to the tune of over €400 million last year – a subsidy of almost €170,000 per claimant in one year alone,” the party said in its manifesto.
It added: “ESRI research has highlighted that these claimants tend not to be owners of small family farms and businesses – some of whom are currently struggling to stay afloat – but owners of larger enterprises.
“We would restrict this relief to assets worth three times the value of the average farm.”
In a statement to The Journal, a Labour spokesperson said the party isn’t proposing “any specific changes on inheritance tax in our manifesto”.
The spokesperson said Labour will develop a “Spanish style net wealth tax with a 1% levy on assets worth over €2 million excluding (up to specified limits) the family home, pension assets and family businesses and farms”.
In its manifesto, Labour said it will “broaden the tax base with increased taxes on wealth, not income” via a “net wealth tax like the Spanish model”.
A Social Democrats spokesperson noted that only around 3% of the population ever pay inheritance tax.
“It is only paid by a minority who inherit relatively large sums,” said the spokesperson.
The party spokesperson added that there is “no good reason to tax an inheritance, which is received by accident of birth, more favourably than productive activities like work”.
“In cases where a son or daughter is living in a home, which they have inherited from a parent, there is already a provision in law to facilitate inheritance tax being waived in certain circumstances,” said the spokesperson.
“For that reason, the Social Democrats do not favour any increase in the threshold at which inheritance tax is paid.”
And in its manifesto, that party said it would “examine the fairness and appropriateness of the current regimes around Business and Agricultural Relief” for inheritance tax.
Aontú, Independent Ireland, People Before Profit, and Right to Change did not respond to The Journal when asked for comment.
None of the above listed parties include anything specific to inheritance tax in their general election manifestos.
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Pure Canadian Maple syrup for less than €5????
Canadian bacon mmmmmmmm
Canadian bacon or danish bacon? Hard choice
Tayto for me in toronto?? Fvck yea!!!
Leslie, living in Canada 13 years now…. Take our bacon! Use it with maple syrup…. Bask in the glory!
And Trevor in GTA5 is canadian…. Cannot get any more awesome!
Canadian bacon 7 days a week and twice on Sundays…. Choice not that difficult at all.. And smothered in maple syrup….. Heaven On a plate
I was in Toronto a few years ago and one the 7/11s sold Hunky Dorys
I must try Graham. Have never tried. But I will
Yeah, hunkys are fine, but miss my tayto….
Does this mean more Terrance and Philip shows?
Mr. Lahey will be planting more shit-seeds and harvesting more shit-weeds!
It means you don’t have to be a member of the European Union to trade with The EU. It’s time to get our sovereignty back from a dysfunctional EU!
Yep. That EU has been nothing but trouble, what with all their money and subsidies and protection and guidance they give us. I mean, really, what have the Romans ever done for us?
We entered into the EU in the early 70′s we went into years of recession shortly thereafter right through to the 80′s up to the 90′s. We lived in a false unsustained economy from 1995 until 2008. Subsequently Europe was on the verge of collapse and our country has been thrown into years of austerity and grim, grim future for us and our children! Ten of thousands were forced into a mass immigration. Europe is a failed entity,there are those of you that just convince yourselves otherwise and basically pretended everything is just fine.
Michael, it still is on the verge of collapse. What we have now is all smoke and mirrors. Watch the bond markets closely over the next few months. Massive emergency asset taxes are in the way as well as bank deposit confiscation Cyprus style.
Sean people refuse to see that because the they still believe the lies politicians tell them.
Europe is a failure!
Well there is the roads….. oh ye well ofcourse the roads…..and the education ….ye ok but aoart from the roads, education, what have the romans ever done for us???
Look at what it truly cost us, Graham
Greedy farmers can’t look past their own gate morelikes
Agreed.
Free trade makes jobs… Thats the whole ballgame….. Free trade makes jobs.
Farmers could instead look at it that they now have 40 million consumers to sell beef & lamb to.
Free trade means jobs. More jobs means more disposable income. More disposable means an increased market for farmers to sell their produce to. Which means benefits for farmers, not drawbacks. This is good news for everyone, farmers included. Now, let’s get a free trade deal with the US next.
Free trade means more jobs?
You must be joking or have come down with the last shower.
These deals, conducted in secret with multinational corporations leading them are about one thing only – increasing these companies’ profits and returns to the top few percent capital owners at labour’s expense.
Forcing ever more government services into private hands for profit & ensuring a regulatory race to the bottom. Putting ever more ‘legal’ barriers, by stealth, in front of governments’ looking to the well being of their citizens. Much as happened thru’ the WTO for regulations on ‘financial products’ which enabled Wall St. to flog its toxic (fraudulent) mortgage backed securities all over the world & trigger the global crisis.
When are people going to realise ‘democracy’ hasn’t been operating for decades (if ever much).
This is plutocracy. The elites & lobbyists negotiating these deals couldn’t give a toss about ‘jobs’.
All they care about is profits & ‘rents’. And ‘wages’ and any other benefits to ordinary citizens, provided directly or thru’ governments are seen purely as as ‘cost’ to be reduced or eliminated.
Trade ‘deals’ are the number one anti-democratic tactic of the neo liberal agenda of the last few decades. Absolutely responsible for the finance & property pyramid/casino bust and the mass unemployment now being used as a tool of further oppression of the majority of (labour) citizens.
The WTO has repeatedly failed recently (the ‘Doha’ rounds) to reach global deals because some democracy has broken out in some developing or lesser developed countries (notably S America) & they’ve had enough of being shafted by multinational corporations & banks.
So, guess what? It’s now the turn of the ‘developed’ countries to get shafted, taking advantage of their economic crisis.
Time to wake up & realise these elites act only in their own & class interests. To imagine otherwise is just stupid. If there’s one thing these last six years (& the previous causal period) should have taught us – this is it.
Here’s another brief article from a Canadian perspective.
TLDR version
“Im a commie…. I like to rant”
Correct Joey. He wants more government, not more freedom.
Would there be as much lobbying if government wasn’t as big?
“….a commie…” ?
Hmmm…no, if you read my comments you’ll notice that I’m arguing for a capitalist structure that respects democracy, rather than one we have that indulges in fraud & maladministration in favour of the top few percent who also occupy the key positions of public interest authority, regardless of what nominal (mainstream) party is voted for.
You know, one that doesn’t create global economic crises & then use mass unemployment as a weapon of oppression, instead of using the facilities the monetary system already has to the benefit of the majority of citizens.
But, I don’t think you get your head out of your bottom long enough to notice, eh?
Farmers can go and shite. Overall this is good news.
They can use that shite as fertilizer…
It’s aboot freedom. It’s aboot democracy.
Canada eh!
Could mean a flood of Canadian finance houses setting up their European HQ’s and European Customer service centers in the Docklands in Dublin..Thats a good thing,,,However Canadian farmers will have open access to the French and German markets..Thats possibly risky for the Irish farmers…However , worriers don’t worry too much..the Irish have concluded deals with China and have solid trading relations with the Arab states , with further scope for growth…It’s a good thing over all..
Could mean a flood of Canadian finance houses setting up their European HQ’s and European Customer service centers in the Docklands in Dublin.”
Ireland needs more gambling casinos ?
the Irish have concluded deals with China and have solid trading relations with the Arab states ,”
– yes that is good – but are these Arab states Muslim – where immigrants come from that apparently are unwanted here ??.
Pity is we did not conclude a Finance deal with China to borrow money and keep the IMF out .
Jim….by “Gambling casinos” I presume you irresponsible muts who lead the Irish banks to a crash…That type don’t exist in Canada..The Canadian financial system is highly regulated and operates within strict Government controls..Canada is just about the only country left in the “western world” that didn’t suffer a financial crash or a recession..The Australians are now heading the same route as the rest of us…The Canadian economy and banking system has stayed very strong and intact while the rest of us ran around like headless chickens..So I would believe yes , a flood of Canadian finance houses here would be a good thing…..
An Arab state by its very description is of course Muslim.. What immigrants from the Arab states are you talking about..??..We emigrate to them..Irish engineers working on oil rigs, Irish medics working in the UAE or Kuwait…We are one of the few countries in the world exporting Halal meat to the Arab world..That market is strong and growing..Yes..A good thing
Ghana and Angola “negotiated” with the Chinese and ending loosing their oil facilities in return for finance..Thats not negotiation , that’s a takeover with no way out.
The only reason we have solid trade with the Arab states is because we allow Muslims to move here in their thousands and build their Mosques. Basically our government are selling our country to who ever trade with them. This gives the impression our exports are thriving and thus creat a false economy for the benefit of politicians who secure their pensions in a fraudulent manner.
Our country is being sold out from under us.
We don’t have a government we have an occupation!
Michael..Don’t do the typical rte spin and assume Ireland is the sought after country in the world…This country offered wealthy Arab states products they needed..Halal quality meat and quality processed meat…We also provide education services in this country, to Muslim men and women ( who cannot access education in their own Muslim countries ) and wealthy Muslim families..These people are Muslim and require Mosques if they are to practice their religion…Should Catholics and Church of Ireland people not build their churches and practice their religion…?…These Muslim people are here legally and contribute to society by paying taxes and spending everyday..Should we refuse that , because they are Muslim..?..Sorry Michael that sounds a tad racist..!!
@Michael Fehily,….”rte spin” what the fu…ck is that suppose to mean? Don’t show your ignorance with the racist accusation.
Ireland is a sought after country as it is a soft touch with our dysfunctional immigration laws and we offer more Social Welfare entitlements to immigrants that any other Europen country. Pay two years of taxes and hey presto, you get Social housing, free medical and Social Welfare.You and others think that those who come into our country and pay taxes should have the same rights as Irish Nationals. Those who come here to work and are allowed to do so, pay taxes because it is the law. Immigrants who are allowed to reside here, work and pay taxes should look at it as a privilege and not as right! In In Germany immigrants must contribute to society by paying taxes, if you become unemployed you get Social Welfare for six months and then it is goodbye, off you go! You think that we should allow everyone into our country just because they want to. That is called an invasion!
Michaael….I’m afraid ignorance is clearly what you have just displayed..RTE spin is their opinion and their beliefs and their news rammed down our TV screens…Treating people like fools..The way pat Kenny and others were famous for…If you don’t see that , you’re in that brigade…You’re problem..!!
Regarding your claim that the Muslims you see around town , like those in the Mosque in Clonskeagh or South Circular rd , are here for Social Welfare reasons is clearly driven by racism..The vast majority of Muslims here are wealthier the average Irish..They come here for third level Education and training…They wouldn’t even know where the local welfare offices are…Don’t talk rubbish..
@Micahel, I didn’t associate Muslims with Social Welfare, you did?
Muslims are very rich that is true and they are not here just for the education that is not entirely true. Their modes operandi throughout Europe is to build Mosques and the Muslim religion. They do not integrate, they refuse to allow their children to marry outside of their culture and faith, they do not tolerate non Muslim religious materials in their homes and they do not tolerate other religions in their country of birth. They are on a crusade.
Recently in Cork they sought planning permission for an information centre and then blatantly showed total disregard for that planning permission and our planning laws by operating the “information centre” as a Mosque, having prayer meetings in the early hours of the morning disturbing the residents of the area! Total disregard for the privilege of being invited into our country total disregard for our laws.
In their own countries their education is superior to ours, they have teachers from all over the world to teach them English and educate them. Therefore why are they going to places like Ireland when we are alien to the lifestyle they choose to live? Open your eyes!
First Michael you’re displaying fear of Muslims…They didn’t get permission to hail the call to prayer they caught permission for a number of Mosques here in Dublin , however they can’t sound the hailers…Anyway the Catholics are experts at sounded the hailers..Kenny and rte & co have been doing that for decades…What do you think the angelus are about..?..Repeat…They come here for education…mainly third level…look at UCC if you can’t see beyond your nose…We are not a catholic or white supremacy country…Used to be , but thankfully not anymore….Open your mind..!!
Toronto is one of the most culturally diverse and pluralistic cities in the world..It is also the engine of the of the 7 wealthiest and one of the 7 largest economies of the world…Are Canadians being taken over by Muslims also..??
If Canadian banks are regulated – good – but when they are here they obey Irish laws – ie basically little / no regulation .
Why do think Dell come here – and set up ” Finical services ” / gambling – that aspect of Finance is the most lucrative form of ” industry ” on planet at the moment – dealing in virtual money – and if the lose – the government / sorry – the people will bail them out .
re Arab emigration – u say many Irish go to Arab countries – why then is there so much dissatisfaction / hatred for Muslims coming here ..??
The Canadian banks got bailed out in 2008 too, but that doesn’t fit the rhetoric
Micheal F. Have you tried to get citizenship in one of those countries ?.
Our farmers don’t like competition. Why?
Because Irish farmers have to follow rules that are costly but provide safe meat. Outside farmers can cut corners and provide “meat” that is cheaper because regulations are not as strict.
Equine in beef… Contaminated pork….BSE….
The irish can cut corners like the rest.
Joey I’ve no idea how you linked that to the farmers! Did you think that scald all was caused by garners dressing their horses up as cattle and sending them off to the slaughter house??
Its gonna hit our meat industry. Thats a certainty
Business is Business.
There’s documentaries on the way they breed cattle in the U.S and Canada. Believe me, we won’t be buying there beef!!
Ireland has the best food in the world meet fish dairy veg. For taste quality freshness we are a world leader on what we produce. We can take on any country and beat them in this area. Competition will always challenge and we will have to adapt. But we will be the better for it in the long term. I know our product is perceived and known to be the best world over.
Why are the famers worried? Sure won’t the tax payers be taking care of them as always.
That’s right! Who needs farmers, we can get out food in supermarkets sure…..,
Oh Brendan, what a silly argument
You take food out of people’s mouths, give it to a farmer and then charge poor people more when the food comes to the market, madness!
Ireland’s trade with Canada is currently €2.7 billion and has doubled since 206.”
- that’s progress – took 1,800 + years to double – . A lot of typos today !!
Wah Wah whinging farmers. It’d be better for all if the entire world had free trade without propped up markets.
Exactly, I’m finished with farmers! Going to get my food in the shops in future……..
Interesting… Canadian farmers are worried also… Must be world wide the way farmers react….
Remind me not to vote for Paul Murphy. He’s against free trade and capitalism.
I thought almost everyone supports free trade. Let’s go back to living in caves and hunting and gathering so we don’t buy imported goods.
Agriculture in the EU is about as far from free trade as you can get!
I’ve got a brand new combine harvester, EU grants, greedy old farmers, they’ll never change.
Neither will you by the sounds of things
Here in Canada they are actually more worried about our beef industry affecting theirs!! I was listening to a talk station here today and commenting on our quality of livestock and dairy products are very high. Personally I think it would be far better for Ilya Irish regards to the supply of raw materials etc.
Also there is nothing cheap out here, food in general is just as expensive especially dairy and meat.
The ICSA’s beef chairman, Edmond Phelan, said the negatives could outweigh the positives for Irish beef farmers, because the deal allows for up to 40,000 tonnes of Canadian beef and 70,000 tonnes of Canadian pork into EU markets.
”I am concerned that imports of cheaper Canadian meat have the potential to undermine the price of Irish beef in key export markets within the EU. ”
Since they by and large always vote Neoliberal what are they whinging about – and they never showed much concern about the effect the EU export subsidies have on developing countries .
And why should they? They protect Irish interests which is in short supply these days!
Cheaper meat
The same farmers that were against Ireland’s entry into the EEC
I wont eat their boring meat
A top door into the bigger Americas market, it’s all about the money
Wow Ireland’s trade has doubled in 2000 years. (206). Impressive!!!!
Do Canadian farmers use growth promoters/Hormones in their meat and milk like the USA. If so how can it be sold in the EU. Or is this what was really spoken about behind closed doors, GMO,s are what the yanks want us to consume, have they arrived.
I pray to god this means some decent dairy products in Canada. Charge ridiculous prices for piss poor milk and cheese.
have your say