Call for ‘very unfair’ rules on Inheritance Tax to be amended for childless couples

A motion calling for inheritance tax rules to be amended so that childless couples can leave their inheritance to other relatives or friends without them being penalised by high rates of inheritance tax was passed at the June meeting of Meath County Council.

Sinn Fein’s Cllr Fionnan Blake's motion called on Meath County Council to “write to the Minister for Finance to amend the Inheritance Tax threshold, so childless couples can leave their inheritance to other relatives or friends at the current Group A threshold of 33 per cent after 400K.”

He explained that for Group A, inheritance is 33 per cent over 400,000, which applies to children inheriting from their parents but he said there is a huge drop for Group B which is 33 per cent over €40,000 which applies to siblings, grandparents, grandchildren, nieces and nephews, while for those in Group C, which includes cousins, in-laws and no blood relations, is 33 per cent over €20,000.

“This system is very unfair on childless couples. People with no children when they pass away after working hard all their lives paying their taxes, their next of kin or whoever is closest to them and whoever they want to leave their belongings to, have to pay huge inheritance tax when they drop down into Group B and Group C. I'd like to see this changed so childless couples can pass on to the person or persons closest to them in the Group A band,” he said.

- Funded by the Local Democracy Reporting Scheme