Dáil Éireann Debate, Tuesday - 24 February 2026
404. Deputy John Lahart asked the Tánaiste and Minister for Finance if his Department has examined the feasibility of introducing a lifetime inheritance threshold, index-linked and applying across all gifts and inheritances; and if he will make a statement on the matter. [15180/26]
View answerCAT thresholds are currently aggregated on a lifetime basis under a self-assessment system, with an individual being required to submit a return reporting receipts by way of gift or inheritance at the point when their lifetime receipts exceed 80% of the relevant CAT lifetime tax-free threshold.
Policy considerations in relation to CAT Group thresholds are complex. Last year my officials examined a number of policy options in the Tax Strategy Group paper, and a further review will take place this year. Ultimately the setting of CAT thresholds is a matter to be considered in the context of the annual Budget and Finance Bill cycles.
It is also important to bear in mind that CAT is a tax on unearned wealth and aims to be a progressive tax tool. In relation to your proposal to index-link the Group thresholds for gifts and inheritances, while I can appreciate where you are coming with this idea account needs to be taken of the following amongst other things:
Automatic index-linked CAT Thresholds would limit the governments ability to respond to changing fiscal conditions.
The current Group threshold structure provides a degree of certainty, both in the levels of thresholds available to the public and the tax yield generated. Index-linking the thresholds could produce ambiguity as to what thresholds will be available going forward in addition to the expected revenue.
Finally, the Deputies should note that any further changes to the 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.
