The Group 1 inheritance or gift tax threshold has been extended to cover the natural parents of an adopted child.

The new provision will allow an adopted child to avail of the £316,800 (€402,225) threshold on receipt of a gift or inheritance from his or her natural parents. This threshold previously applied only to a gift or inheritance from the adoptive parents.

The Finance Bill 2001, which was considered by the Seanad this week, was amended at the Committee and Report stage in the Dail by the enhancement of existing provisions and the inclusion of other significant proposals.