Fianna Fáil TD for Dublin South-West, John Lahart, has called for reform of inheritance tax exemption thresholds, describing the current system as “wholly unfair” and discriminatory against those without children.
His comments follow recent contributions from party colleagues on the need to review how inheritance tax is applied across different family structures.
“At present, anyone inheriting a home or other assets faces a 33% tax rate on amounts above the relevant tax-free threshold,” Deputy Lahart said.
“However, those thresholds differ significantly depending on the relationship between the person leaving the assets and the recipient.”
He pointed to the stark contrast in the current bands, where a parent can pass on up to €400,000 tax free to a child under Group A, compared to €40,000 for a niece or nephew under Group B, and just €20,000 for other relationships under Group C.
“This creates a system that heavily favours those with children. A person leaving their home to a child will see far less tax applied than someone leaving it to a niece, nephew or sibling,” he said.
Deputy Lahart argued that the structure is outdated and no longer reflects the diversity of modern Irish society.
“I see no justification for penalising people who do not have children by subjecting their loved ones to a significantly higher tax burden,” he said.
“Someone who has worked hard all their life to build a home should be able to pass it on to a loved one without facing disproportionate taxation.
He added: “Regardless of a person’s relationship with the decedent a believe they should be treated equally.
“Irish society has changed significantly in recent decades, and our tax system must evolve to reflect the reality of modern family life.”
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