A financial advisor has labelled inheritance tax a “morally repugnant vulture type tax”, as Fine Gael hints the threshold for the tax will be raised. 

Yesterday, Minister of State Neale Richmond told the Irish Examiner that there is an “appeal” to reforming inheritance tax ahead of Budget 2027. 

Currently, a child can inherit up to €400,000 tax free from their parents; any sum above that figure is taxed at a rate of 33%. 

Capital Acquisitions Tax of 33% applies to inheritances from other relatives at much lower thresholds. 

Supporters of the status quo argue that very few people pay the tax and that it reduces inequality with society. 

However, on The Hard Shoulder, financial advisor Karl Deeter argued the tax is “immoral” and should be abolished. 

“Even a bog average house in County Dublin is going to cost you half a million,” he said.

“So, just to get something that's totally average, you're going to end up with a tax bill for having the gall to receive something from people who loved you. 

“The whole point is you're effectively trying to destroy the transfer of wealth intergenerationally.

“And by the way, the rate is only twice what a minister gets paid per year; so, if they want to talk about generous schemes or taxes, they should look no further than themselves.” 

Mr Deeter continued that if Ireland abolished inheritance tax it would not be a revolutionary decision, given a number of other European countries did so long ago. 

“The actual rate in Sweden is zero, the actual rate in Norway is zero because they abolished it,” he said. 

“Because they realised it's pointless, what you ideally want to see, if you can, is generations building up as much wealth as they can, having a good savings effect, having a good investment and capital investment ethos, then passing that to the next generation.” 

Mr Deeter added that he does not believe the State should have the right to “take dead people's things, you don't rifle their pockets”. 

“When you die, I don't believe the government has a moral position to come in and pick over your bones and decide, ‘Oh, you rose above your station, you don't want to be getting ahead of yourself there’,” he said. 

“I just think it's a morally repugnant vulture type tax and we're taught to hate vulture funds, but then we like vulture taxation. 

“It's completely hypocritical.” 

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