On Tuesday August 25th, a public meeting on inheritance tax will take place in Mount Merrion Community Centre at 7.30pm. This meeting will be addressed by Ms Cora O’ Brien, Tax Policy Director at the Irish Tax Institute, and Kenneth Garvey, Managing Partner at Cusack Garvey Chartered Certified Accountants and Chartered Tax Advisors. Both speakers will provide an objective overview of the facts and figures regarding Ireland’s inheritance tax regime.
Families in South Dublin have been hit the hardest with heavy inheritance tax in recent times. The increase in property prices is generating a massive tax burden on families who inherit homes from their loved ones and children are being forced to sell the family home as a result.
For example, an only child who inherits their parents’ home worth €500,000 would be forced to pay a hefty €90,750 in Inheritance Tax (unless of course it is the child’s main residence). If the home is worth €1,000,000, the tax would be a staggering €225,750.
Financial Expert Karl Deeter stated that inheritance tax is an opportunistic’grab’ by the government because it targets those for whom we have the least empathy.
British Chancellor of the Exchequer George Osborne is expected to raise the inheritance tax threshold to £1million in the U.K.
My proposals for the inheritance tax regime are as follows:
WAS €521,000 IN 2008 NOW €225,000
PROPOSAL : RESTORE 2008 THRESHOLD LEVEL OF €521,000
2. TAX RATE ON INHERITANCES WAS 20% ON VALUE OVER THE THRESHOLD IN 2008 NOW 33%
PROPOSAL : RESTORE 2008 TAX RATE OF 20%
3. PAYMENT DATE DUE BY OCTOBER 31ST FOR INHERITANCES IN PREVIOUS 12 MONTHS RESULT : PRESSURE TO RAISE SUBSTANTIAL CASH IN SHORT PERIOD
PROPOSAL : EXTEND THE PERIOD FOR PAYMENT TO THE SECOND OCTOBER AFTER THE INHERITANCE SO THAT PAYMENT IS NOT DUE FOR AT LEAST A CALENDAR YEAR AND COULD BE CLOSE TO TWO YEARS.