Dáil Éireann Debate, Wednesday - 5 February 2025
270. Deputy Cathal Crowe asked the Minister for Finance if he will consider changing inheritance tax thresholds which in their current form could be considered unfair to individuals who have no children of their own; and if he will make a statement on the matter. [2812/25]
View answer271. Deputy James Geoghegan asked the Minister for Finance if he is considering any reforms to the existing thresholds relating to capital acquisitions tax to address persons who have no spouse and have no children; and if he will make a statement on the matter. [2830/25]
View answer273. Deputy Noel McCarthy asked the Minister for Finance his plans, if any, to increase the inheritance tax threshold for those who are single and without children; and if he will make a statement on the matter. [2904/25]
View answerI propose to take Questions Nos. 270, 271 and 273 together.
Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
You should be aware that there would be a significant cost in making substantial changes to the CAT thresholds. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
