Finance Minister rules out abolition of inheritance tax in upcoming budget

Finance Minister Jack Chambers said he does not believe that abolishing the tax would be fair, saying that capital acquisitions tax are important factors in a 'balanced economy'. Picture: Damien Storan

Finance Minister Jack Chambers has ruled out the abolition of inheritance tax, despite changes to the levy due to be implemented in the upcoming budget.

Mr Chambers said he does not believe that abolishing the tax would be fair, saying that capital acquisitions tax are important factors in a “balanced economy”.

“I think abolishing it completely doesn’t represent wider equity we want to see in our country and our society,” Mr Chambers said.

“Providing for progressive changes in different budgets in the context of property prices increasing is important, but it’s important to have capital acquisitions tax as a revenue generating measure.”

His comments come as a campaign is ongoing, led by former Dublin TD Alan Shatter, calling for the total abolition of the tax.

The Finance Minister also confirmed he is reviewing tax credits ahead of the upcoming budget, while rejecting criticism by economic think-tanks on the planned cost-of-living package.

He said that while inflation has moderated “people are still feeling the pinch of high prices”, but confirmed that the overall package would be less than Budget 2024.

The Dublin West TD also confirmed the Government is examining the mortgage interest relief scheme, which was introduced on a one-year basis in Budget 2024.

We’re reviewing that presently and obviously looking at the wider mortgage landscape, and particularly the impact of variable rate mortgages and how they’re interacting with the changes in the ECB rates.

He added that recommendations on the matter would be forthcoming in the coming days.

It comes as Taoiseach Simon Harris has indicated that the Government will set out plans for the €13bn Apple tax windfall in the budget.

Mr Harris told a Fine Gael meeting on Wednesday that the funds would go towards infrastructure and investments in the future.

Meanwhile, Mr Chambers questioned a policy proposal by the European Union to ban smoking and vaping in outdoor areas, saying that there needs to be a “balanced approach” taken.

“I’d be careful about removing smoking completely from public environments, we need to take a balanced approach on it and support people who have an addiction with nicotine,” Mr Chambers said.

“I’m not sure how workable the suggestion is from the European Commission and where they would define outdoor areas and how that would be applicable in the context of the business community."
He said he has not seen the specific proposal.

The Minister was speaking as he launched a plan to implement recommendations on the Standard Fund Threshold for pensions, raising it by €200,000 a year between 2026 and 2029.

Mr Chambers said the move was being done to provide “certainty and clarity” for those who want to stay and be promoted within the workplace.