Inheritance Tax reform campaign says talks with Simon Harris 'extremely productive'

End Discrimination in Inheritance Tax campaign is seeking an index-linked lifetime tax-free threshold to replace the current inheritance tax structure

A campaign group looking for changes to inheritance tax laws which they believe are discriminatory have described a meeting with Tánaiste and finance minister Simon Harris as "extremely productive". Picture: James Manning/PA Wire

A campaign group looking for changes to inheritance tax laws which they believe are discriminatory have described a meeting with Tánaiste and finance minister Simon Harris as "extremely productive".

The End Discrimination in Inheritance Tax (Edit) campaign is calling for an index-linked lifetime tax-free threshold to be introduced to replace the current inheritance tax structure. Led by Cork teacher James Sexton, Edit say existing laws discriminate against 1m single and childless citizens in Ireland when they pass on inheritance to their relatives.

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

Mr Sexton led a delegation which met Mr Harris at Government Buildings, and Mr Sexton said the Tánaiste was "fully engaged" on the issue. "He acknowledged the discrimination and is willing to bring about reform. His Tax Strategy Group will be working about on it and we will meet again in July," said Mr Sexton. 

Taoiseach Mícheál Martin has previously acknowledged the existing inheritance tax system needs reform but Edit has warned that increasing tax thresholds is not the answer.

"We hope Mr Harris implements an Index Linked Lifetime Tax Free Threshold for all citizens is now required. Nothing would get removed from parents and their children. Instead, it ensures equality, fairness and justice for all citizens in our Capital Acquisitions Tax regime.

"This is the solution - not more tinkering around with the Group A, B and C thresholds."