Inheritance Tax.
A Kerry TD has said current Inheritance Tax laws are too restrictive and discriminatory.
Fianna Fáil Deputy Michael Cahill insists there is much discussion regarding the suitability of the €400,000 tax free allowance that a child can avail of when inheriting a family home from deceased parents.
He said while it would seem only right that the family home should remain within the family circle, where and when possible, he asked that consideration be given for those who are childless and have decided that when their time comes, they would like to bequeath their family home to a niece or nephew.
At present, the tax free allowance for a individual inheriting a family home from a parent is €400,000. When compared to the valuation placed on the average home, Deputy Cahill said a serious anomaly arises where a niece or nephew inherit a tax free allowance is only €40,000 – a figure that precludes them from affording the property.
Deputy Cahill added that a home valued at €450,000 – inherited by a child of the deceased – would make them liable for €16,500 in Inheritance Tax. A niece or nephew inheriting a property, if the same value would incur, would see them foot a bill of €135,300 because of the different relationship.
“Many would see this as discriminatory towards childless couples and I believe there may be a possibility that in the present financial and housing climate, that nieces and nephews of childless couples could be treated on a par as if they were daughters and sons of the deceased” said Deputy Cahill.
“I have made several representations to the Taoiseach, the Minister for Finance, and the Minister for Public Expenditure along with submitting a number of Parliamentary Questions on this matter and I sincerely hope that measures will be taken in the upcoming Budget to address this discrimination against childless citizens” he added.