A number of TDs have begun lobbying the Government to cut inheritance tax in this year’s budget. 

Currently, inheritance tax varies depending on the relationship between the individuals in question. 

Parents and some grandparents can currently pass on €400,000 to a child tax free. 

Other relatives can leave someone €40,000 tax free, while for everyone else the limit is €20,000. 

Speaking to Newstalk, Independent Ireland TD Ken O’Flynn described this as an “archaic” situation.

“It doesn’t work, it’s not fit for purpose anymore,” he said. 

“It doesn’t reflect society of today and it needs to be addressed. 

“I feel very impassioned by meeting those couples all over the country who have raised this situation to us in Independent Ireland over the last number of months now. 

“So, I’m hoping to have that addressed in the next couple of weeks and a realistic talk about... what’s actually happening in society and what needs to change.” 

A woman writes a bank cheque. Picture by: Alamy.com.

The Cork North-Central TD added that it is “beyond a joke” that a person can leave money tax free to a charity but not a family member. 

“You can leave all your money to the dog’s home and the dog’s home is tax free,” he said. 

“So, the Chihuahua has more rights than the niece or the nephew - that doesn’t make sense to me.” 

Political pressure

On The Pat Kenny Show, Political Correspondent Seán Defoe said a number of other TDs shared Deputy O’Flynn’s view on the matter. 

“I was looking at some of the questions that Michael Lowry has asked, for example,” he said. 

“One of them was in relation to inheritance tax where you can, if you have a child, they can inherit €400,000 - that threshold went up in the budget. 

“You even saw people in the election, Alan Shatter, for example, fighting whole campaigns based on inheritance tax. 

“You have Michael Lowry asking about it, Sharon Keogan was raising it in the Senate as well.”

Leinster House. Picture by: Alamy.com.

People who favour inheritance argue that it would not be fair for some people to be gifted large sums of money tax free, while others get nothing because of their family circumstances. 

“The Government would argue this is really Ireland’s only wealth tax,” Seán said. 

“That’s it’s fair as a result of that because if you amass a whole pile of assets or property, fair play to you, well done - but a lot of people aren’t in that situation. 

“And the money that’s raised from that goes back into social welfare or whatever to benefit the less well off.”

Main image: An elderly pensioner holding leather wallet. Picture by: Alamy.com