Sir, – Joanne Hunt’s article (“No kids? No tax breaks. Child-free challenge inheritance tax rules,” July 15th) quotes those seeking changes to inheritance tax/CAT laws saying that this is about “equality and fairness” for childless people.
In Ireland, it is the person who receives the inheritance who pays the tax, not the dead person’s estate. Under the current system every person can receive up to €400,000 tax free from their parents. Everyone is therefore already treated the exact same under the current laws.
The proposed change would remove the priority given to children, even those still fully dependent on their parents, in favour of a large general tax threshold that could apply between total strangers. This would forever remove the fundamental premise that close family ties matters for CAT purposes and is most certainly taking away something from children and families.
It would also be difficult to estimate what this would actually cost the State. You can be sure it would lead to some unforeseen creative tax planning for larger estates.
RM Block
Of course, there is an argument to be made that allowing any tax-free threshold perpetuates inequality. But that is a separate discussion for another day.
– Yours, etc,
Kay Chalmers,
Douglas,
Cork
