2020 Inheritance Tax in Ireland
Budget 2020 saw a less-than-noteworthy inheritance tax threshold increase.
The tax-free threshold for inheritances from parent to child have increased again in this year’s Budget, rather unremarkably from €320,000 to €335,000. This is a far cry from the target of €500,000 mentioned by the government in recent years. (The threshold was over €540,000 in early 2009). With the property market well on its way to recovery since the downturn, many will find this increase will do little to relieve the tax burden.
More worryingly for those without children, the Budget fails to address the other categories of beneficiaries. These thresholds have remained the same since October 2016. €32,500 for inheritances to a sibling, a parent, a niece or nephew (Group B); €16,250 to further relations & friends (Group C). These thresholds are very unfair on a large portion of the population. A 2018 study by the Organisation for Economic Co-Operation and Development (OECD) shows that Irish women have the third highest rate of childlessness in the developed world. 18.4% of Irish women over 45 don’t have children.
When I’m giving inheritance advice to Clients, particularly older Clients without children, they find it extremely disheartening and frustrating to be told that a third of their assets will likely end up with the Revenue after their day, having paid taxes all their lives. During our chat, we will look at ways to reduce the amount of tax beneficiaries will have to pay from the inheritance you want to leave to them.
For more information on this, please get in touch, either by email: firstname.lastname@example.org
or phone: 086-8377559. I’d be happy to help.