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Inheritance tax change – a step in the right direction

Posted on October 8, 2019 by Browne & Murphy Solicitors

Todays budget increased the Group A threshold from €320,000 to €335,000 with no changes for those belonging to “Group B” and “Group C”.

Therefore the current inheritance tax thresholds from the 9th October 2019 are as follows:

Group A  

Threshold amount: €335,000

Includes: Son/daughter/minor Child of a deceased Child. Child also includes adopted children, step-children, long-term foster children (this is subject to conditions) and a child of a Civil Partner/minor Child of a deceased Child of a Civil Partner. Certain nieces and nephews may also be able to avail of group A provided certain conditions are complied with

Group B

Threshold amount:€32,500

Includes: Brother/Sister/Niece/Nephew/Aunt/Uncle/Grandchild/Grandparent and a child of a Civil Partner of a Brother / Sister.

Group C

Threshold amount: €16,250

Includes: Relationships not covered by Group A or B. eg cohabiting partners, distant relatives and friends.

The amount of tax payable by a person on receipt of a gift/inheritance depends on the following:

• the amount

• the relationship between the parties (which will determine the group above)and

• whether the person received a previous gift from someone in the same threshold group.

The amount of a gift/inheritance that can be received tax free is known as the threshold.

Gifts/Inheritances received by a beneficiary above the threshold amount set out above is subject to inheritance tax. The current rate of tax is 33%.

The budget made no changes to the current tax rate.

However it is important to note, that where you receive a gift/inheritance from your spouse or from a Civil Partner no inheritance tax is due.

While the increase in the Group A threshold above is a step in the right direction, considering the increase in house prices it can be argued that it did not go far enough and from the table you will see that it has a long way to go to return to level of 2009. Where the group A threshold was €542,544.

The information set out above is to act as a guide and is no substitute for specific advice that you would receive from us about Inheritance Tax. The law and tax law is always changing and affects each person differently.

Contact our office on 061 599033 for further information


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