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DURING THE RECENT Budget, the inheritance tax threshold was hiked up significantly in what was the first major change in five years.
Making the announcement in the Budget speech, Finance Minister Jack Chambers said it was “appropriate” to make the first increase in the rate since 2019 given the increase in property values since then.
Inheritance tax, technically known as the Capital Acquisitions Tax, is a tax of 33% on gifts and inheritances which kicks in at a particular limit.
It does not have to be paid if the inheritance does not reach this limit.
Inheritance from a parent to a child (including adopted or stepchildren) is counted as a “Group A” inheritance.
Within this group, the inheritance tax limit increased from €335,000 to €400,000.
Close to 97% of people will be unaffected by this tax change.
The Group B category limits also increased from €32,500 to €40,000 – this category includes siblings and nieces or nephews.
Within the third, Group C category – which is any relationship not covered by the first two categories – the threshold was increased from €16,250 to €20,000.
So with political parties making all types of pledges and promises in the run up to the general election, have they been saying anything on inheritance tax?
In its manifesto, Fine Gael said it “acknowledges the principle of inheritance tax but recognises that the burden of capital taxation has increased significantly over the past 15 years”.
The party said Ireland generates “above-average revenue from inheritance and gift taxes” and added that “recent fiscal drag has further cut the thresholds in real terms”.
The party has pledged to “build on progress made in Budget 2025” by increasing the inheritance tax threshold by raising the Group A threshold to €500,000, Group B to €75,000, and Group C to €50,000.
A spokesperson for Fine Gael told The Journal that the party is also “committed to reviewing the composition of the groups where the deceased does not have children”.
“In contrast, Fianna Fáil give few clear commitments in relation to their inheritance tax reforms,” said the spokesperson.
“While Sinn Fein commits to reforming Capital Acquisitions Tax as a revenue raising measure.”
Meanwhile, a Fianna Fáil spokesperson said the party “understands the imposition on people who inherit homes or farms due to the current threshold for inheritance tax”.
In a statement to The Journal, a spokesperson said inheritance tax rates “need to take property values into account”.
While the party noted increases in Budget 2025, it added that the “current thresholds are still lower than what they were in 2008”.
Inheritance tax is a tax of 33% on gifts and inheritances which kicks in at a particular limit, and Tánaiste and Fianna Fáil leader Micheál is in favour of reducing this rate from 33% to 25%.
The spokesperson added that the party is “conscious too of the very low thresholds when the deceased is childless” and will review this threshold – this Group C threshold is currently €20,000.
While no figures have been provided, Fianna Fáil’s manifesto pledges to “increase and adjust the inheritance tax thresholds in each budget to reflect the wider increase in property prices in the Irish economy in recent years”.
A spokesperson for Sinn Féin told The Journal that the party believes in a “tax system that is fair” and remarked that inheritance tax is an “important tool to tackle inequality and invest in public services to deliver a fair society”.
The party would revert the inheritance tax thresholds to pre-Budget 2025 levels and increase the rate from 33% to 36% – Sinn Féin say this would raise €143 million annually.
“We believe that people’s family homes are not the same as other forms of wealth – and shouldn’t be treated in the same way,” said the spokesperson.
“This is why we oppose the local property tax on family homes – and why we outlined our plan explaining how that could be abolished.”
Alan Shatter is a former Fine Gael TD and previously served, simultaneously, as Minister for Justice and Minister for Defence.
He is contesting the general election as an independent candidate in Dublin Rathdown and is chair of the Inheritance Tax Reform Campaign.
Shatter held public meetings and ran a campaign in the run up to Budget 2025 calling for an end to inheritance tax, which he claims is a “jealousy or resentment tax”.
In a statement to The Journal, he further described inheritance tax as “state sponsored grave robbery and double taxation”.
He added that it “forces the sale of modest sized homes that could provide home security for a bereaved child or grandchild and their family”.
Shatter said Sinn Féin’s “opposition to the property tax on homes while favouring the forced sale of homes to pay increased inheritance tax is bereft of any logical insight”.
Meanwhile, he noted that both Fine Gael and Fianna Fáil intend to retain the tax.
“Fine Gael has recycled an unimplemented promise first made during the 2016 general election that lacks any time frame for implementation,” said Shatter.
He added that Fianna Fáil has a “number of meaningless promises, including a pledge at some unspecified date to reduce the tax rate to 25%”.
“Should all their promises be implemented, the tax will still remain more draconian than it was 16 years ago, when the rate was 20%, and taking account of both the increase in the consumer price index and property values, the thresholds were higher.”
He added: “For example, up to 2008 a child could inherit a home from a parent up to a value of €542,000 without any inheritance tax hit”.
That sum would be equivalent to around €675,000 today, according to the Central Statistics Office.
“None of the Dáil parties yet get the extent of the public anger the tax generates,” said Shatter, “it should be abolished.”
Meanwhile, the Green Party said in a statement to The Journal that it would “prioritise increasing income tax bands and income tax credits to ensure the largest number of people possible benefit from any money that is set aside for tax reduction”.
In its manifesto, the party says it will exclude “wealthy farmers and business owners from agricultural and business relief”.
“Agricultural and Business relief from inheritance tax subsidised fewer than 2,500 people to the tune of over €400 million last year – a subsidy of almost €170,000 per claimant in one year alone,” the party said in its manifesto.
It added: “ESRI research has highlighted that these claimants tend not to be owners of small family farms and businesses – some of whom are currently struggling to stay afloat – but owners of larger enterprises.
“We would restrict this relief to assets worth three times the value of the average farm.”
In a statement to The Journal, a Labour spokesperson said the party isn’t proposing “any specific changes on inheritance tax in our manifesto”.
The spokesperson said Labour will develop a “Spanish style net wealth tax with a 1% levy on assets worth over €2 million excluding (up to specified limits) the family home, pension assets and family businesses and farms”.
In its manifesto, Labour said it will “broaden the tax base with increased taxes on wealth, not income” via a “net wealth tax like the Spanish model”.
A Social Democrats spokesperson noted that only around 3% of the population ever pay inheritance tax.
“It is only paid by a minority who inherit relatively large sums,” said the spokesperson.
The party spokesperson added that there is “no good reason to tax an inheritance, which is received by accident of birth, more favourably than productive activities like work”.
“In cases where a son or daughter is living in a home, which they have inherited from a parent, there is already a provision in law to facilitate inheritance tax being waived in certain circumstances,” said the spokesperson.
“For that reason, the Social Democrats do not favour any increase in the threshold at which inheritance tax is paid.”
And in its manifesto, that party said it would “examine the fairness and appropriateness of the current regimes around Business and Agricultural Relief” for inheritance tax.
Aontú, Independent Ireland, People Before Profit, and Right to Change did not respond to The Journal when asked for comment.
None of the above listed parties include anything specific to inheritance tax in their general election manifestos.
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It’s not coming up at the doors because abortion is considered a settled matter by the vast majority of the country, we voted to stop restricting women’s healthcare.
Aontú are really a one-issue party, they were formed purely on the abortion issue and its their number one priority above all else.
One trick party’s are a danger to a country just look at the UK with UKIP and Brexit…they got what they wanted and it hurt people and then they didn’t know what else to do.
@Martin Bishop: No surprise, he ignored Sinn Féin members voting to support legislation for abortion for two years and then left whem he realised that he couldn’t change it so ignoring the consensus of support by the vast majority in the Republic is no great surprise.
@William Slevin: If you know of anyone who might have committed a murder, you should be reporting this to the Gardaí.
@William Slevin: Hopefully this country will never take the backward step you wish for. A step which allowed Savita Halappanavar to die needlessly.Your opinion is your opinion but do not force your beliefs onto others. Ireland has had to put up with enough of this clergy enforced rubbish to last an eternity.
@William Slevin: Don’t trust the electorate to get it right? Typical BS from you. Irish people voted overwhelmingly to allow abortion, ye lost BADLY and never stopped moaning. You love talking down to people, a perfect match to Peadar
@Martin Bishop: Well it is very evident to me that you are not well read in Dail reports or the happening in the Dail every day. Toibin is the one TD that holds the Government to account every time . He , along with some very good Independents are the real opposition. Toibin is by a mile the best speaker and worker in the Dail.
@William Slevin: William, neither you nor I will ever face the personal decision of whether to have an abortion. That choice belongs solely to the woman. While it takes two to create a pregnancy, it is the woman who bears the physical and emotional weight, and ultimately, the responsibility of deciding what’s best for her.
I am, and always will be, pro-choice because I believe in respecting women’s right to decide for themselves. They have the right to choose whether to continue a pregnancy or seek an abortion, and that decision deserves our respect, even if it differs from our personal
@William Slevin: can we start rising children under trees if can afford cost of feeding them… ..
@William Slevin: Back in your box little Willy, you are an opinionated Old Testament type, no one wants to hear your warblings you frustrated old melt.
@William Slevin: man’s issues dooo
@Gerry Lamont: she died of sepsis, it’s officially declared on a HSE report
@William Slevin: No matter what you think, abortion is not murder. End of.
@William Slevin: actually 33.4% of the population did NOT vote against abortion, nice attempt to inflate the number though.
@William Slevin: hopefully with modern birth control u might not get pregnant William
@William Slevin: some man to pontificate over ‘trusting the electorate’ when you are moaning about the will of 68% of the people.
@Richard Hennessy:
Nobody should get pregnant these days if they don’t want to. There are numerous options for contraception, abortion shouldn’t be one of them.
@Paul Fahey:
It was 33.1%. Do you really think anyone would try to inflate the number by 0.3% ?
@brendan hackett:
100% of aborted babies disagree…
@Tired Jim: it’s a well documented fact she asked for a termination,was refused,sepsis then set in from which she died
This saddens me, Eimer Tobin does absolutely sterling work in my area on the issue of public transport, with which we are having massive problems. However, I cannot give my vote to her because it just doesn’t align with my own thoughts on abortion. I absolutely do not have the right to tell another woman how many children she should have and, if she should bear a child with a severe physical disability which is going to impact greatly on her life and, the life of her existing children.
@Fiona Wyse: we say how the lady in America as a one trick pony got on.
@Fiona Wyse: Sounds like something Hitler would say when you talk about disabled children. The WOKE left in this country are really terrifying at times the way they speak.
@Fiona Wyse:
Nobody is telling anyone how many children to have. Have you never heard of contraception?
@Adam H2022: Lol! *dont tred on me* but like do what i say
@Fiona Wyse: we’ll said Fiona,we now have 20,000 babies exterminations a year,let’s try and increase this to 30.000
@Adam H2022: there are no disability or respite for families or support for carers on this county. If you want to help disabled children so much or judge woman who v make decisions for their habits, maybe make the life of families with disabled coldhearted bearable and not punish them with means tested carers allowance, no respite or services for their disabled child?
Oh man, launching the BIG MANIFESTO without actually having said manifesto to hand / printed——– OOCH!!!
@Frank Mc Carthy: a fairly schoolboy error alright. Obviously, Peader was impressive & on the money for those ill thought out badly worded referendums earlier this year & he did well in that ’10 peader’ debate last week but, all in all, shouldn’t every party have their manifesto out there long before 8 days to the polling booth???
@Kevvy kerrr: ’10 LEADER’ debate, damn predictive text
How can Aontu and leader Peadar Tobin
be trusted on any of the big issues facing the country when they refuse to accept the result of the referendum held in 2018 when the majority of the people voted to amend the constitution on abortion.
In an Trump like move, Peadar has stated that if elected he will push to introduce amendments to the current legislation on abortion in an effort to undermine the will of the majority of the people.
Regardless of Aontu policy on all other issues, the very fact that their party aim to overrun the referendum held in 2018 should trigger a warning light in the minds of the electorate.
@Chaotic State: he doesn’t have to agree with the results of a referendum and is perfectly entitled to try to get his views into law using democratic means. That’s what voting is all about .
@Chaotic State:The factors that influenced a yes vote in 2018 were the commitment to a three day wait period a twelve week limit. Aren’t those parties and candidates who are now proposing to abolish those also rejecting the will of the people.
@William Slevin: You are writing through the rear end of you a_us. Accept the democratic rights of others and move on. You and your Trump crew are the most undemocratic bunch of i__ots!
@Con Cussed: Do you respect the fact that Trump won the US presidential election? It sounds like you don’t.
Another pro-life shinner. Is irony dead?
1 TD, 8 councillors, no MEPs and 2000 members in the 32 counties. Barely counts as a party yet he is never off the airwaves or the telly. There are bigger groupings in the Dail that get virtually no coverage.
@Dermot Blaine: I see that Aontú’s website refers to ‘the south of Ireland’ and ‘the north of Ireland’ – Peadar must forget that he quit the ‘Republican Movement’ at times.
@Brendan O’Brien: Dah! He’s factually correct!
@K O: Malin Head is in the south?
@K O: it’s Ireland and Northern Ireland
@Sara McSweeney: Shinners won’t use the term Northern Ireland.
@K O: Yes, always greatly amused me that the furthest part of the ‘south’ that is north is further north that the furthest part of the ‘north’ is north.
Maybe ‘Northern Ireland’ should have been called ‘North Eastern Ireland’ for clarity.
@Brendan O’Brien: but thats what the majority of people of people say Northern Ireland Southern Ireland
@Sheila McNulty: That’s not what Aontú say.
@Brendan O’Brien: Aontù is a republican party.
@Sara McSweeney: The north of Ireland is part of Ireland.
@Sara McSweeney: will be nord of Ireland’s soo ssoon…
Becouse
thushnamies coming from afriko or asia etc…
Also 7 or 10mill not much diff as
stiilll we too small toobe divided against orange and apples…by from scenarios of top of 0000.1oldmuney
@William Slevin: I didn’t say anything to you, I pointed out that Aontu are barely a political party in my comment, not aimed at anyone in particular. Not sure what comment I’m meant to have on copy and paste
@A W: So you failed English in the Leaving Cert I presume. I’ve heard a better standard of English being spoken in tents along the canal than this drivel you’re spewing.
@Sheila McNulty: no, only people from Northern Ireland refer to Ireland as ‘Southern Ireland’
I raised the abortion stance with him when he called to my door on Tuesday afternoon so I’m disappointed to hear that statement. It is the main reason that I won’t vote for his party.
Not terrible, but I wish that Toibin would have taken a stronger stance on stopping parties who are running for election like Labour and Fine Gael from introducing abortion up until birth as well as repealing the nasty 12-week legislation. For too long, the Irish people have been tricked into believing that abortions are harmless because the vocabulary has been changed sneakily (unborn child to foetus, partial-birth abortion to late-term abortion etc.) and those who claim to be “pro-choice” don’t want a woman to have the right to know just what they are choosing. FG and FF keep blocking legislation to allow doctors to show women exactly what an abortion looks like. Even still photographs of aborted babies have been banned as well. They want to control the discourse and normalise abortion.
@Frank O’Hara: Is that you, William?
Can you provide a source for “introducing abortion up until birth” ?
A foetus is the medical term for an unborn baby, starting at the 11th week.
What’s your problem with using a correct, scientific language?
Unless, you think people are in general too “slow” to know – but, then they shouldn’t be able to vote at all, correct?
@Wolfgang Bonow: William who? Numerous Labour, Social Democrat, Fianna Fáil and Fine Gael politicians have stated that they support legalising abortion up until birth by removing all limits. In fact, Labour and the Social Democrats went a step further and have even openly included it in their manifestos. Life begins at conception, it is an unborn child, not a foetus. That’s why when you murder a pregnant woman, you are charged with double murder. Do you know why doctors don’t remove the baby completely when dismembering the body in a partial-birth abortion? They would be charged with murder if they did because the baby can survive outside the womb. Abortion is barbaric, it involves severing limbs of the unborn child and sucking the baby’s brains out via tubes inserted into the womb.
@Frank O’Hara:
Shhhh… Don’t tell people what abortion actually involves, you need to refer to babies as clumps of cells or something also.
Abortion is a settled matter for the vast majority of the electorate who voted in a relatively recent referendum to liberalise the law subject to certain safeguards.The so-called review of the legislation, carried out by an abortion advocate and pal of Minister for People Sleeping on the Streets, O Gorman, is DOA, having failed to achieve a consensus of TDs to implement its predictable and one- sided recommendations.
For this very reason I won’t be voting any of the one trick pony minority parties or independents, we will have a coalition with two of the big three, SF FF FG, take your pick of two of them
Euthanasia is next thing coming, he should get out ahead of the other parties by being pro euthanasia/right to die
@P. V. Aglue: nah, he’d rather people suffer against their will I’d say.
LIfe…….at any cost.
@Martin Bishop:
Like a baby being aborted suffers against their will ?
Publicans don’t care how smashed out of your head you are, as long as you can stagger up to the bar and open your wallet, they’ll keep pulling the pints, drinking at home is much cheaper and less boring
It doesn’t come up because if you mention your view to the wrong person you will be looked upon as being right wing reactionary or left wing murderer.
Toibin believes women in crisis pregnancies choose abortion because they can’t afford to raise the child. Seriously he said that.
Extract fantasy from logic, palpable overbites in this party, have to be careful with religious zealotry.
The SF vs Aontu arguments here are a great spectator sport. That saying ‘narcissism of small differences’ springs to mind.
have your say