Following a very highly attended public meeting on inheritance tax on Tuesday August 25th in Mount Merrion Community Centre, Co. Dublin, strong support was shown for proposals to lobby the Minister for Finance, Michael Noonan to cut the inheritance tax in the upcoming budget.
Ireland has one of the harshest inheritance tax regimes in the world. For example, an only child who inherits their parents home worth €350,000 would be forced to pay a hefty €41,250 in inheritance tax. In 2011, they would have only paid €4,479.
Dubliners in particular are heavily penalised by this discriminatory tax. In 2014, the Revenue collected €168.3 million in inheritance tax from Dublin-based taxpayers alone. This is more than 50% of the total inheritance tax of €327.95 million collected nationally.
My proposals for Minister Noonan are outlined below.
Please show your support by clicking on the below link and signing the petition to cut the inheritance tax in the upcoming budget.
1. Increase the Threshold
In 2008, the threshold was: €521,000
The threshold is now: €225,000
Senator White’s Proposal: Restore 2008 threshold level of €521,000
2. Tax rate on inheritances
In 2008, the tax rate was 20% on the value over the threshold
The tax rate is now 33%
Proposal: Restore 2008 tax rate of 20%
3. Payment Date
Inheritance tax is due to be paid by October 31st for inheritances in the previous 12 months.
Result: Substantial pressure is put on the bereaved individual to raise the money in a very short period of time.
Proposal: Extend the period for payment to the second October after the inheritance so that payment is not due for at least one calendar year.