873. Deputy Fionntán Ó Súilleabháin asked the Tánaiste and Minister for Finance if his Department is reviewing the equity of Capital Acquisitions Tax (CAT) relationship bands to better reflect modern Irish family structures; if his attention has been drawn to recent advocacy campaigns highlighting the discriminatory impact of the severely depressed Group B (€40,000) and Group C (€20,000) lifetime thresholds on childless individuals who wish to pass family homes or assets down to nieces, nephews, siblings, or cohabiting partners; and the measures his Department will consider ahead of the upcoming Budget to expand tax-free thresholds for non-lineal descendants. [63580/26]

Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. The group thresholds were most recently increased in Budget 2025.

The Group A threshold increased to €400,000 from €335,000. This threshold applies where the beneficiary is a child of the disponer. This includes adopted children, stepchildren and some foster children. Parents may also fall within this threshold where they take an inheritance from a child.

The Group B threshold increased to €40,000 in Budget 2025 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer. Following recent changes made to Capital Acquisitions Tax legislation, the Group B threshold also applies to persons who receive gifts and inheritances from the wider family of their foster parents, for example, from their foster siblings, uncles, aunts and grandparents.

The Group C threshold increased to €20,000 in Budget 2025 from €16,250, with this threshold applying to all other cases.

I have met with the 'End Discrimination in Inheritance Tax' group who are an advocacy group in relation to this matter, and am aware of their position and proposals.

As with all taxation matters, CAT is kept under review. As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.