Dáil Éireann Debate, Tuesday - 17 February 2026
449. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the review of inheritance tax within his Department; the parameters for this review; and if he will make a statement on the matter. [11614/26]
View answer450. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding a timeline for the publication of his review into inheritance tax; and if he will make a statement on the matter. [11615/26]
View answer451. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the merits of amending existing inheritance tax parameters; if the existing relationship category thresholds can be reviewed; and if he will make a statement on the matter. [11616/26]
View answer485. Deputy Emer Currie asked the Tánaiste and Minister for Finance if he has considered any changes to the inheritance tax policy for individuals without children; and if he will make a statement on the matter. [12581/26]
View answerI propose to take Questions Nos. 449, 450, 451 and 485 together.
Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. It is important to say that the group thresholds were most recently increased in Budget 2025 as follows:
The Group A threshold, which in general applies where the beneficiary is a child of the disponer, increased to €400,000 from €335,000.
The Group B threshold increased to €40,000 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.
The Group C threshold increased to €20,000 from €16,250, with this threshold applying in all other cases.
These increases amounted to an increase of approximately 19.4% on Group A, while Group B and C Thresholds increased by 23%.
My officials examined CAT as part of last year's annual Tax Strategy Group exercise. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming last year's Budget. They were published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision-making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process. The Tax Strategy Group paper relating to CAT also examined a number of cost modelling exercises, including proposals to amend the Group B threshold parameters which I am aware a number of Deputies have raised in the past year.
As demonstrated by that exercise, there is a significant associated cost with further changes to the group thresholds. However that said I do understand the concerns raised and the burden of capital taxation, and a further review will take place this year.
Finally, the Deputies should note that any further changes to the thresholds and who falls within these thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle.
