The “unfairness and inequity” of the current rates of Inheritance Tax was an issue raised by the new President of IPAV, the Institute of Professional Auctioneers and Valuers, at the institute’s annual conference held in Carton House, Maynooth recently.
Eamon O’Flaherty, a Director of Property Partners Brady in Maynooth and a native of Lanesboro, said we have high home ownership rates compared with other European countries, even if this has fallen somewhat during the recession.
Recent research by Aviva Home Insurance found more than 4 out of 10 people want to be able to bequeath a property to their children.
“Many ordinary people are now finding that when they inherit a home from a parent they are being hit with large tax bills. The tax rate for inheritance sky-rocketed during the recession and the threshold for tax-free inheritance has been halved. Capital Acquisitions Tax is now imposed at a rate of 33pc on amounts over €225,000 for a son or daughter. This is a penal rate,” he said.
“It is simply not fair for a sibling who inherits a property from a parent to have to sell it to pay this penal tax. This severity of this type of tax goes back to the dark ages and it’s now time to change it.”
He called on the Minister for Finance to address the issue in Budget 2016.