The Revenue Commissioners have been accused of overseeing a “significant tax write-off” after revealing that €12.6 million in heritage tax breaks were granted without a public record of the assets involved.
The exemption from capital acquisitions tax (CAT) allows wealthy heirs to avoid tax bills if they commit to providing public access to their historic homes or art collections for at least 60 days a year.
Despite operating the tax break for items of “national, scientific, historic or artistic interest”, Revenue conceded: “There is currently no legislative basis for Revenue to publish details of these properties, even though such access is a condition of the exemption.”
This means the public have no way of establishing what items are homes that can be accessed for viewing as part of the scheme.
The same scheme operates in the UK, where the public can search more than 39,000 entries on a database of everything from castles and chapels to paintings and fine silver. They can then apply to view these homes and items. However, a recent investigation by the Financial Times exposed failings in the database and raised questions around public access to the items given tax exemptions.
In Ireland, however, despite the same scheme being in place, there is no database and Revenue declined to provide a list of the items and properties that were deemed culturally and historically significant.
A spokeswoman for Revenue said it is a condition of the exemption that facilities for viewing the property are made available to the public or to recognised bodies.
“This requirement is provided for in the capital acquisitions tax legislation and must be satisfied in order for the exemption to apply,” the spokeswoman said. “As CAT is a self-assessed tax, the onus is on the taxpayer claiming the exemption to ensure all conditions have been satisfied.
“There is no legislative provision that allows Revenue to publish details of individual taxpayers who have claimed the exemption. Separately, Failte Ireland does not compile or publish a specific annual list of heritage properties and gardens that are open to the public.”
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In a letter provided to the Dail’s public accounts committee (PAC), the Revenue Commissioners revealed that in the ten years spanning 2014 to 2024, the cost to the exchequer of granting these inheritance tax breaks was €12.6 million.
In 2024, there were 13 recipients of the heritage tax break, with the cost to the exchequer coming to €4.4 million.
Aidan Farrelly, Social Democrats TD and member of the PAC, said he would be raising the lack of public register in a future committee meeting.
Social Democrats TD Aidan Farrelly
“This is a significant tax write-off and it certainly merits further investigation,” he said. “It’s surprising to see a scheme like this roll out without the details being made public, if one of the main reasons for giving the break in the first instance is that the building is open to the public.
“We need to see detail regarding the historical or cultural significance — how is this determined and by whom? Is this determined by people in the Revenue office? I will raise this at the public accounts committee to seek clarity.”
The exemption from CAT applies to gifts or inheritances of certain heritage property, including heritage objects, houses and gardens.
The kinds of objects that qualify for the exemption include pictures, prints, books, manuscripts, works of art, jewellery, scientific collections and other items not kept for trading. The object must be of national, scientific, historic or artistic interest and be kept permanently within the state, except for temporary absences approved by Revenue.
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A spokeswoman for Revenue said the exemption may be withdrawn if the object is moved outside of the state without Revenue approval or if reasonable facilities for viewing the object are no longer provided.
The same rules apply to the inheritances of houses and gardens. Revenue said access must be afforded to the public for at least 60 days in any year. This includes at least 40 days, of which 10 days must be Saturdays or Sundays, between the start of May and the end of September.
The access has to be afforded “in a reasonable manner and at reasonable times, to the whole or to a substantial part of the house or garden for at least four hours on each day”. Under existing rules, Failte Ireland must be given the name and address of the house or garden, along with full details of opening hours and admission prices.
In the UK, the scheme is credited as having allowed many old British country houses to remain open to visit. It has also been credited with keeping historic collections in the country.
In Northern Ireland, on one property, the public can apply to view portraits and landscapes by artists including Théobald Michau, Jan Frans Beschey and Bartolomeo Passarotti. On another estate, the public can view a collection of silver, armour, pictures, drawings, porcelain, pottery and glass.