Ireland’s childless citizens have been urged to “wake up to the inequality” of the inheritance tax system. 

Currently, children can inherit up to €400,000 from their parents tax free. 

If a child’s parent is deceased and they are under the age of 18, a grandparent can also gift them €400,000 tax free.

However, if another relative bequeaths a member of their family money, they must pay Capital Acquisitions Tax (CAT) of 33% on any sum over €40,000. 

If they are not related, they must CAT on any money they inherit over €20,000. 

On Lunchtime Live, End Discrimination in Inheritance Tax campaign group spokesperson James Sexton described it as a “discriminatory issue that will not go away”. 

“We feel there is general consensus amongst the public now that our current inheritance tax rules are unfit for purpose,” he claimed. 

“The current rules are completely out of step with modern Irish society.

“We have more than a million citizens who do not have children and yet, our tax system privileges one family model over all others.” 

Mr Sexton continued that he was not in favour of reducing the threshold at which children who receive money from their parents pay tax. 

Instead, he simply wants “fairness, justice and equality” for single people and their loved ones. 

“Our Taoiseach and our Minister for Finance, Simon Harris, and our Minister for Equality, Norma Foley, they appear to still believe that the current inheritance tax rules are fair and equitable,” he argued. 

Public Expenditure Minister Jack Chambers and Finance Minister Simon Harris speaking during a press conference at the Department of Finance. Picture by: Alamy.com 

In Budget 2026, the tax free threshold for people leaving money to a relative - who is not a child - was raised from €32,500 to €40,000. 

However, Mr Sexton added that he remains “exasperated” with the Government. 

“Really, childless citizens and their loved ones, they need to wake up to the inequality and discrimination that is being allowed to take place through their silence,” he said. 

“Because this is coming down the tracks for their loved ones and there is nothing that they can do about it - unless we have radical reform in our inheritance tax rules.”

Main image: Hands of an elderly pensioner holding a leather wallet. Picture by: Alamy.com.