Why inheritance is the dirty secret of the middle classes – harder to talk about than sex

Nope, it costs the person receiving €80k. It costs the deceased nothing.

When I pay the shopkeeper €10. I don’t think ‘it cost me €5 to give him €5, because he has to pay income tax’. Nope, I gave him a tenner. What tax the receiver of the money must pay is not a cost to person giving the money.

That is a minor component due to high net worth individuals sometimes buying land just for that purpose but that doesn't happen very often. I would agree with it being made more difficult to take advantage of the rule. I would instead be happy to have, say instead of the 90% reduction, that the amount you pay is calculated if and when you dispose of it. E.g a decreasing schedule of 1% per year. Pay 33% if sold in the first year, 32% if sold in the second year etc.

The main reason land is expensive is that not much is sold. People tend to keep it in the family to pass on. I think there is a stat that on average a piece of land is sold every 200 or 400 years or something like that (which I presume is just a way of saying that only 0.5% or 0.25% of land is sold in any given year). But the value of the capital is more or less irrelevant to the person whose livelihood depends on it. You are seeing it as an outside looking in and thinking of it the same way as the person who is eyeing up their parents semi-D in D4. That's not the way it works.

Another reason that it can be expensive is that land becomes crazy expensive when planning permission is granted on it. What often happens is that a landowner will then sell and pour the proceeds back into more land because that is all they know. That happened in my area in the mid-late 2000's. Lads who had had land bought for millions by developers got into bidding wars with each other and land was sold for north of 50k an acre. (at the time, you might get 150 Euro a year for an acre if you rented it out). BTW, the anyone who sold land at development prices would have been taxed on it as such.

Of course it costs them something, if I specifically want to leave someone €500K I need to allow for €580K+.

I dunno about your relationship with your shopkeeper, but I'm not in the habit of gifting mine assets.

It amazing the way things come back to bite you in the bollax. Know you g lads that got stupid convictions, drunk driving, smoking weed or assault and cannot travel to the US, Canada or Australia

How did you build up a por credit history

good article

If you want some analysis, see here:

https://www.gov.ie/en/publication/7fbeb-report-of-the-commission/#foundations-for-the-future-report-of-the-commission-on-taxation-and-welfare

Executive Summary:

https://assets.gov.ie/234317/551e66d4-7f6c-492e-b81a-335c4e83ad6f.pdf

See section 7.6.2 here for proposed reforms to CAT:

https://assets.gov.ie/234316/b4db38b0-1daa-4f7a-a309-fcce4811828c.pdf

cant see that happening at all, wealth is clearly accumulating in the value of assets such as property, and with no end in sight of our property problems......

I was living in the house at the time and it was a specific bequest so I inherited it the moment my mother died. I actually was unaware of this so I was late filing the inheritance tax return and this led to further issues with Revenue.

Under a Sinn Féín government, inheritance tax or capital gains tax would reduce to €300,000 and increase the rate for all categories to 36%.

https://www.thejournal.ie/mary-lou-mcdonald-interview-6-5951974-Dec2022/

by my estimation a son/daughter who is left a million euro house netts 769,000 after tax ,less Solicitor fees,that looks pretty good to me and leaves little room for complaint unless you feel there should be no inheritance tax in this country. Or maybe you believe your particular circumstance should be the one exception to the rule.

Ah but they have to target the rich. Robin Hood economics from SF.

Christmas Eve and all that's bothering you is getting a bit of my money.

Not in million years I'm a few steps ahead of you.

No offence Happy Christmas anyway.

nothing bothering me just on a discussion thread giving my view on inheritance tax,many happy returns.