The Minister for Finance announced an important change to the tax free amount that can be inherited by Class A beneficiaries. When making a will you can tax plan by leaving your estate to children rather than other relatives.
The Minister said ‘’I recognise that there are ongoing concerns about the Capital Acquisitions Tax impact on the inheritance of the family home. Therefore I have decided to increase the lifetime Group A tax-free threshold which broadly applies to transfers between parents and their children from €320,000 to €335,000.’’
Group A applies to:.
• a child of the person giving it. This includes a stepchild or an adopted child.
• a foster child if the foster child resided with and was under the care of the disponer and they provided the care, at their expense, for a period or periods totalling at least 5 years before the foster child reached the age of 18.
• parents who take an inheritance from their child but only where the parent takes full and complete ownership of the inheritance. If a parent receives an inheritance where they do not have full and complete ownership of the benefit, or if a parent receives a gift, then Group B applies.
