Dáil Éireann Debate, Wednesday - 5 February 2025
255. Deputy Michael Cahill asked the Minister for Finance to urgently address the tax-free allowance anomaly of €40,000 that exists for brothers, sisters, nephews and nieces to bring it in line with the €400,000 tax-free allowance that a son or daughter can inherit given this discriminates against single people and couples who either do not have children or cannot have children (details supplied); and if he will make a statement on the matter. [2296/25]
Amharc ar fhreagraCapital 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.
There would be a significant cost in making substantial changes to the CAT thresholds such as the one proposed by the Deputy. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
