MEP Brian Hayes calls for rise in threshold for inheritance tax

The Government needs to raise the threshold on inheritances people can receive from the parents without having to pay tax, MEP Brian Hayes has said.

Mr Hayes, who represents Dublin, published figures Thursday showing that the capital accounts for over half of all inheritance tax paid last year. He said the figures show a clear anti-Dublin bias on the issue.

The Revenue collected €168.3 million in inheritance tax from Dublin-based taxpayers last year out of a total of €327.95 million nationally.

The next highest county was Cork, with €27.6 million, followed by Mayo (€13.1 million), Kildare (€12.1 million) and Kerry (€11.8 million)

““I think the current rate is especially unfair on those living in Dublin,” Mr Hayes said. “Sons and daughters, now have to pay a large amount of tax on relatively small estates from their parents.”

Inheritance tax kicks is due on any inheritance from a parent above €225,000 at a rate of 33 per cent. Mr Hayes notes that seven years ago the rate was 20 per cent and the threshold was double what it is now.

“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.”