347. Deputy Emer Currie asked the Minister for Finance if he has considered any changes to the inheritance tax policy for individuals without children; and if he will make a statement on the matter. [62956/25]

348. Deputy Emer Currie asked the Minister for Finance the estimated cost of making changes to CAT to address concerns regarding inheritance tax policy for individuals without children; and if he will make a statement on the matter. [62957/25]

I propose to take Questions Nos. 347 and 348 together.

Capital Acquisitions Tax (CAT) is a beneficiary-based tax on gifts and inheritances that is payable on the value of the property received. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. CAT is charged at a rate of 33% above each Group threshold.

There are three Group thresholds:

• the Group A threshold (currently €400,000) applies where the beneficiary is a child of the person giving the gift or inheritance

• the Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance

• the Group C threshold (currently €20,000) applies in all other cases.

Revenue have indicated that it is very difficult to cost the measure indicated by the Deputy, and have estimated that uplifting Group B to €400,000 would cost approximately €305 million. This cost is estimated on the basis that there would be two separate €400,000 thresholds. In reality however, if this measure were to be implemented, there would be just the one Group A threshold for beneficiaries from parents, aunts, uncles and brothers and sisters which may lower this cost. However, this cannot be accurately costed at this time.

Furthermore, my officials have examined Capital Acquisitions Tax as part of the annual Tax Strategy Group exercise. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming this year’s Budget. They were published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision-making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process.

A link to this year’s paper on Capital Taxes which includes some cost modelling can be found here: www.gov.ie/en/department-of-finance/collections/budget-2026-tax-strategy-group-papers/

It should be noted that there would be a significant cost in making changes to CAT. In this regard, the options available for setting CAT thresholds must be balanced against competing demands.