Majority of people think family homes should be exempt from inheritance tax

A survey has found that 83 per cent of people think the family home should be exempt from inheritance tax.

Royal London Ireland, a life ­insurance and pensions provider, polled 1000 adults across the country.

It found that 58 per cent strongly support removing the family home from inheritance tax thresholds.

Only five per cent strongly oppose the family house being removed from inheritance tax bands.

The inheritance tax rate is currently 33 per cent; however, children can inherit property or other items worth up to €400,000 tax-free.

Speaking on Newstalk, Economics professor, Barra Roantree, said the current threshold is high enough:

“On average, people who inherit something get €100,000. So the threshold to start receiving tax is four times what the average amount received is. So very few people pay it.

“The idea that we would increase at a time when we’re being told that there’s going to be no space for personal income tax cuts in the next budget, and that at a time when our tax base is increasing relying on the corporation tax, the idea that we would erode further revenues from inheritance tax, capital acquisitions tax would be unwise.”

The budget will be announced next Tuesday, where there has been talk of changes to inheritance tax.

Joe Charles of Royal London Ireland said: “The appetite for change is clear. For most families, a house isn’t just an asset, it’s where they have grown up and where they may continue to visit.

“Additionally, it’s security for the next generation. It’s clear from these research findings that many people believe the current inheritance tax system risks putting that in jeopardy.”