Concerns of Kerry parents on major tax liabilities will be addressed
Onerous tax regime hasn’t been this restrictive in 20 years
Kerry Fianna Fáil General Election candidate Norma Moriarty has said major reform is on the cards to ease the burden of inheritance tax for families in Kerry.
Councillor Moriarty says Fianna Fáil is preparing a substantial policy announcement to reduce the tax liabilities where parents in Kerry want to be able to pass on the benefit of their hard work over many years, either the family home or their savings, on to their children and grandchildren.
Norma said: “The number of people liable for inheritance tax has risen by 34% in the last four years. Fine Gael and Labour are hammering families in Kerry with hefty tax bills and an uptake in property prices and land values only increases their tax liability. Under this government the level at which a person has to pay Capital Acquisitions Tax on a gift or inheritance from a parent to a child has been reduced by 60% in recent years to just €225,000. The government also increased the Capital Gains Tax (CGT) rate to 33%.
“The total amount of money raised from inheritance tax has jumped by 75% since 2010, an increase from €186m to €327m in 2014. The Government even estimated that revenue will increase by a further 21%, to €400 million this year. In reality the thresholds have not been this onerous since 1995 when Fine Gael and Labour were also in office. What do they have against parents being able to fairly support their children and grandchildren with the fruits of their life’s work?
“Fianna Fáil believes there is now an urgent need for increases in the threshold. We need to ease the burden on families and ensure we have a fair tax regime. Unless there is meaningful reform here many people who are far from wealthy will end up having to sell a property they inherit in order to be able to meet their tax bill.
“Fianna Fáil wants to see the inheritance tax thresholds substantially increased but we are also proposing the removal of the wild variations in the yield by adjusting the thresholds on an annual basis in line with asset price inflation. Comprehensive reform of how the tax is applied would also allow those with large CAT liabilities on illiquid assets to spread out their liability over a 5-10 year period at a low interest rate.
“These are common sense solutions for families in Kerry and across the country. Fianna Fáil wants to help ease pressure and costs on families and we will shortly be bringing forward our detailed plans to overhaul tax in this area.”