Robert Troy
Ceist:323. Deputy Robert Troy asked the Minister for Finance if he will outline any plans to increase the thresholds for favourite nephew and niece rules in terms of inheritance. [46257/24]
Amharc ar fhreagraWednesday, 22 January 2025
Ceisteanna (323)
Freagraí scríofa
As the Deputy is aware, nieces or nephews of the disponer may qualify for favourite niece or favourite nephew relief in respect of gifts or inheritances of business assets. Qualifying nieces or nephews are those who have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.
For the nephew or niece to be deemed to be working substantially on a full-time basis in the business he or she must work:
• more than 24 hours per week at the place where the business, trade or profession is carried on; or
• more than 15 hours per week at the place where the business, trade or profession is carried on exclusively by the disponer, any spouse or civil partner of the disponer and the nephew or niece.
This relief allows a niece or nephew who qualifies for the relief to avail of the Group A threshold. The Group A threshold was increased in Finance Act 2024 from €335,000 to €400,000. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.