Fine Gael MEP for Dublin, Brian Hayes has today (Thursday) said that the Government needs to take a fresh look at the clear anti Dublin bias that exists when it comes to inheritance tax. Mr Hayes made his comments following figures he obtained which show that over 50% of inheritance tax is paid from the Dublin area.
“The issue of inheritance tax is something that needs to be addressed in the next budget. As property prices recover in the capital families are being left with a shocking tax bill.
“Currently, inheritance tax kicks in on any amount above the threshold of €225,000 at a rate of 33%. Seven years ago the rate was 20% and the threshold was double.”
“When this threshold was reduced, there was little expectation that property prices would have recovered so dramatically. It is a clear unintended consequence. Sons and daughters, now have to pay a large amount of tax on relatively small estates from their parents. This is especially unfair to people living in Dublin. Irish inheritance tax is now one of the highest in the OECD.”
“I think the current rate is especially unfair on those living in Dublin. Last year €168 million was collected in inheritance tax in Dublin which accounted for 51% of the total inheritance tax collected in the country.”
“The government needs to review this issue. While it may be difficult to resolve this in one budget, putting in place a fairer tax inheritance regime, can be obtained over a number of budgets,” concluded Mr Hayes.