Childless couples and individuals with no sons or daughters should be able to leave their home to a niece or nephew “without being taxed to the hilt”, according to Independent Galway West TD, Noel Grealish.
The TD has called for a change to Ireland’s inheritance laws that will no longer “punish people for not having children of their own” by issuing those they leave their homes to with “huge tax bills”.
According to Dep Grealish, if, in a will, a person leaves a home with a market value of €300,000 to “a favourite nephew or niece”, who may be their nearest relative, the recipient will be hit with a Capital Acquisitions tax bill of almost €90,000. While a son or daughter would get a tax-free inheritance threshold of €320,000, a nephew or niece is only entitled to €32,500 before paying tax — at a rate of 33 per cent on the rest of the value of the property.
By contrast, Britain has a tax-free inheritance allowance of £325,000, regardless of who is a beneficiary in the deceased person’s will, before taxation comes into effect. The threshold is even higher for children of the deceased person.
Dep Grealish is calling for the laws to be changed regarding leaving a home to a nearest relative, and in the case of people who do not have children, the Galway West TD believes they should be allowed leave their home to a niece or nephew, on the same taxation basis as people can currently leave their home to one of their children.