Blatantly unfair inheritance tax for childless people must be changed - Mayo councillor

THE upcoming budget must take account of the large numbers of childless people who are unjustly discriminated against in relation to inheritance tax.

That’s according to Aontú Councillor Deirdre Lawless, who said: “This is an issue that is affecting a huge cohort of people and one which is so blatantly unfair on so many levels.

"There are almost one million people in Ireland who don’t have children to pass their assets onto, and this is a figure that no doubt will jump over the next few years as we know for a fact that fewer children are being born in this country.

“For people who don’t have children, the question of who will receive their assets and the fruits of their life’s work is an issue that is of huge importance to them and one which causes much stress and mental anguish in many cases.

"Unless you have children, you simply can’t will your assets to loved ones or other family members without them incurring hefty tax bills, which must be paid within one year."

Children can inherit up to €400,000 tax free, she explained, yet nieces and nephews for instance can just inherit €40,000 tax free.

"My colleague, Senator Sarah O’Reilly, has raised this issue in the Seanad, and it is one that we in Aontú are receiving many calls on from constituents right across the country," said Councillor Lawless.

"The majority of people are really exercised by the fact that nieces and nephews who are so loved by them and to whom they want to bequeath their property or money will have to shell out huge sums to revenue.

“For so many people who don’t have children, their nieces and nephews are especially close to them and have a special connection to them.

"I just think that for many people, their aunts or uncles may be like parents to them, and it is desperately unfair that they are penalised in this way.

"Many people may have cared for the physical needs of their loved ones too, willingly so, and those loved ones may well wish that they are rewarded for this, and it is so discriminatory that they will be taxed to the hilt.

"Also, loved ones don’t have to be familial, they could be close friends, and frankly somebody should be able to choose who he or she leaves assets to without those people incurring huge penalties by way of the inheritance tax they have to pay.”

“Not only do they suffer the loss of the person they love, they are financially at a loss also. This is an issue that really needs to be addressed as Ireland’s tax laws are due for a much-needed overhaul, and I really hope the upcoming budget includes some changes to this mean spirited tax.”