Inheritance tax reform campaign makes case to Taoiseach in 'positive' meeting

The campaign held series of discussions at Leinster House in the past week

Campaigners seeking reform of Ireland's inheritance tax laws have said a meeting with Taoiseach Micheál Martin has now placed the issue "firmly on the political agenda". Picture: PA

Campaigners seeking reform of Ireland's inheritance tax laws have said a meeting with Taoiseach Micheál Martin has now placed the issue "firmly on the political agenda".

The campaign by End Discrimination in Inheritance Tax (Edit) seeking to change Ireland’s inheritance tax structure met with Mr Martin on Wednesday, the last in a series of discussions at Leinster House, starting with Tánaiste and finance minister Simon Harris and also including sit-downs with the Fine Gael parliamentary party, Independent Ireland members, and independent TD and Minister of State at the Department of Transport Sean Canney.

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. Edit is calling for an index-linked lifetime tax free threshold of €450,000 to replace the existing inheritance tax structure, which they view as discriminatory against childless citizens.

Co-founder and spokesman James Sexton from Model Farm Road in Cork said the talks had been positive. "We had over an hour with Mr Martin and his officials. He fully acknowledges that reform is needed. It's about how it could be financed," said Mr Sexton.

Deirdre Quinn (End Discrimination in Inheritance Tax Member), Maureen Madigan (End Discrimination in Inheritance Tax Member), James Sexton (End Discrimination in Inheritance Tax Member), Jean Cashman (End Discrimination in Inheritance Tax Member), Kieran Sexton (End Discrimination in Inheritance Tax Member) and Brigid Timmons (End Discrimination in Inheritance Tax Member).

Reforming the system to give a lifetime tax-free threshold of €450,000 to all citizens would cost over €450m annually and financing such a plan became the key discussion topic. Edit raised the possibility of a reform package being introduced over two budgets.

"We're under no illusions. This is about money, and competing demands. But there will always be competing demands and this is an issue of equality, and this is an opportunity to put it right. We made the case to the Dept of Finance and it's up to them now. 

"We are either equal citizens or not. We had a lot of robust discussion and we are confident this is being looked at." 

Earlier this month, Grant Thornton called for CAT thresholds to be reviewed in Budget 2027, which it said should "better reflects modern family structures".