'Time to do the right thing' — inheritance tax campaigners to meet with Tánaiste over 'inequality'

James and Shelia Sexton are members of a campaign group called EDIT (End Discrimination in Inheritance Tax)

Campaigners demanding a change to Ireland's inheritance tax laws for childless citizens will meet Tánaiste and finance minister Simon Harris next week. 

James Sexton, a teacher from Model Farm Road in Cork, has been leading a campaign by End Discrimination in Inheritance Tax (Edit) calling for an index-linked lifetime tax free threshold to be introduced to replace the current inheritance tax structure, branding existing laws discriminatory. Mr Sexton will lead a delegation meeting Mr Harris at Government Buildings on Tuesday March 31.

"Fundamentally, this is an issue of equality. The law discriminates against 1m single and childless citizens in this country. We are going into meeting not to explain further but to seek answers," said Mr Sexton. 

Under existing rules, Capital Acquisitions Tax is payable at 33% above certain thresholds. The threshold for parent to child (Group A) is €400,000 but the threshold to siblings, nieces and nephews, and grandchildren (Group B) is €40,000. For all others – including close friends, unmarried partners, carers (Group C) - the threshold is €20,000. 

Mr Sexton says this means that the state is discriminating against childless citizens. Edit has proposed the new lifetime tax threshold for every citizen, set at a figure to be determined by the Government.

"We are not arguing for the abolition of inheritance taxes. This is a solution and would remove the inequality and discrimination faced by all childless citizens in Ireland 

"Any citizen would be entitled to inherit that amount. Not every child might receive an inheritance from their parent but might from another relative. Nobody could argue with this in terms of fairness and equality.

"We are going into the meeting with Mr Harris in a very positive way. This affects families throughout this country.  Mr Harris has talked before about there never being wrong time to do right thing. Now is the right time to do the right thing."

In Mr Sexton's own case, he and his wife Sheila built their home in the garden of James’ parents on Model Farm Road. Mr Sexton’s brother Kieran, who was living in London, inherited the Sexton family home when their father passed away in May 2022. Kieran is single and was diagnosed with Mantle Cell Lymphoma, an incurable condition, just before Christmas 2024.  Through treatment he is in remission but he would eventually like to pass on his home to his nephews or nieces, just like James and Sheila. "The care and treatment from CUH has been phenomenal, but this is a huge worry for Kieran," said Mr Sexton. 

'Impossible' to pass on home unless law changes

"Kieran has no kids. If he had two kids, they would face no inheritance tax on the home. I would like to pass on our home to my nephews or nieces - but that too is going to be impossible as things stand. Our nieces and nephews are aged in their 20s and working. They do not have big cash savings. There's no possible way our family home can remain in the Sexton family unless the law changes."

Revenue from inheritance tax rose to €968m in 2024, according to the Sunday Independent, and Taoiseach Mícheál Martin has acknowledged the existing inheritance tax system needs reform. Mr Martin has suggested tax laws could be adapted for a favourite nephew or niece to claim inheritance tax relief on property. However, Mr Sexton branded such a proposal "absolute nonsense".

"This would be thoroughly unworkable. We do not have a 'favourite nephew', just as the Taoiseach does not have a favourite child," said Mr Sexton. "Imagine the resentment and animosity this would cause between family in perpetuity after a cherished loved one has passed away."

Mr Sexton said that Edit have taken legal advice on the issue and if necessary could take this route as a last resort. "We hope that won't be necessary but we will explore all avenues. This is firmly a political issue now with cross-party support. Everybody agrees that you cannot continue to have a system that discriminates against someone for no other reason other than their family status."