Increasing inheritance tax during cost of living battle is an attack on working families

Fine Gael’s Finance Committee members are completely against a proposal by the Commission on Taxation and Welfare to increase inheritance tax.

Following reports that the Commission is set to recommend the tax-free threshold for inheritance tax should be lowered in future years, two Fine Gael TDs and a Senator who work on finance issues in the Oireachtas have completely rejected such a move.

Deputies Neale Richmond, Bernard Durkan and Senator Maria Byrne said such a change would be completely unfair on all families.

“This proposal is utterly appalling. It comes at a time when house prices are already high, and families are faced with a cost of living battle.

“People who work all their lives to put a home over their heads and provide for their family should not be punished for their hard work when they wish, at the time of their choosing or indeed their passing, to provide their children with something to help secure their future,” the Fine Gael politicians said.

“If anything, those who have paid so much in taxes and provided so much for their families should be rewarded and not punished. We are calling for this to be the position in Budget 2023 and taxes are cut and not added to,” the FG politicians added.

Under Capital Acquisition Tax (CAT) rules, a child can inherit €335,000 from their parents before they pay tax at 33pc. Thirteen years ago, €542,544 could be inherited or gifted before paying tax at 22pc.

While not putting a new threshold or rate on what should be taxed, it is reported today the Commission said the reduction in the threshold should be “substantial”.

Deputies Richmond and Durkan and Senator Byrne said the commission should not be proposing to penalise working families and taxing them out of their family home.

“Young people across Ireland are following in the footsteps of their parents and are working hard to provide for their future, their families and homes of their own. Parents should not have to worry about their children paying this tax.

“Fine Gael wants to provide people with the comfort that their lifetime of paying taxes and working will not be undermined. We have been committed to ensuring that work pays more, and people really feel this, this is a step backwards.

“We will continue to work for and stand up for working families, particularly as we deal with high energy costs coming into winter.

“It is essential that we continue to put money back in people’s pockets and reward them with security for their children,” the three politicians said