Senator Mary White (FF) has today handed in a petition asking the Minister for Finance, Michael Noonan, to restore the threshold and rate of inheritance tax to 2008 levels.
Speaking on the tax, Senator White said: “Ireland has one of the harshest inheritance tax regimes in the world, with Dubliners in particular heavily penalised by the tax.
The current rate and threshold were introduced at a time when property prices had collapsed, with the aim of getting some flow of tax from a virtually non-functioning marketplace. However, they have not been adjusted back up since property prices in Dublin began to rise again.
At a recent public meeting, I was asked by a number of people to set up a petition to ask Minister Noonan to reconsider to tax. The petition has effortlessly received over 1,000 signatures since then.
One woman who signed the petition gave her rational by saying: ‘A family home should not be sold for tax payments. Parents have worked long & hard & paid enough tax throughout their lives to leave their children with something at the end; it’s a complete disgrace that a home full of memories would have to be sold to pay tax.’
I am calling on Minister Noonan to address this issue immediately. This tax is wrong, it is unfair and it has already been abolished in numerous countries such as Australia, Norway and Sweden as it is deemed as ‘double taxation’. Ireland needs to follow suit.
My proposals for Minister Noonan, as outlined in the petition, are:
- That the current threshold for the tax (€225K) be restored to €521K
- That the current tax rate (33%) be restored to 20%
- That the payment period be extended by a further 12 months to allow for at least a year to raise the substantial funds required to pay the tax bill.
The effect of these measures on the government’s overall tax take will be minimal as the total tax from Gift and Inheritance tax is less than 1% of its net tax income. However the positive effect from lifting this unnecessarily high burden from the lives of those receiving an inheritance from their parents will be substantial,” concluded Senator White.