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Fianna Fáil promises annual inheritance tax cut if returned to government after general election
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Fianna Fáil promises annual inheritance tax cut if returned to government after general election

Party claims ‘others have talked about moving for years’ in what could be seen as a dig at Fine Gael

In a move that could be seen as the party seeking to woo Fine Gael voters, Fianna Fáil’s election platform will promise steady increases in the inheritance tax threshold over the life of the next government.

Senior Fianna Fáil figures yesterday criticized Fine Gael’s lack of action to reduce the inheritance tax burden while in government, despite its TDs regularly calling for an increase in the threshold while he was in power for the last 13 years.

“Relieving the burden of inheritance tax on families and workers in the economy will be a key offering in Fianna Fáil’s tax proposals,” a Fianna Fáil source said.

“While other parties have been talking about the issue for years, it was only in the last budget that it was presented.

“The changes introduced by (Finance Minister) Jack Chambers have delivered much-needed reform to ease pressure on beneficiaries of family homes and other assets.”

In Mr Chambers’ first budget, the main inheritance tax exemption threshold, which applies to children or spouses, was raised from €335,000 to €400,000.

Inheritance tax is a death tax levied on legally acquired savings and assets. Stock image

At the same time, the threshold for parents, siblings, nieces and nephews increased to €40,000, while the category for uncles, aunts, cousins ​​and friends increased to €20,000 excluding tax.

Fianna Fáil will pledge to significantly increase all three thresholds if it gains enough seats to return to government after the general election.

“The changes in Budget 2025 have been well received and will hugely benefit workers, families and those whose home values ​​have increased significantly in recent years across Ireland,” a Fianna Fáil source said.

“This is a key focus area for Fianna Fáil. Budget 2025 showed that the party delivered on its promises and recognized that this is a key issue for Central Ireland and for people across the country.

“There is a desire to go even further in the coming years to reward hard work and ease the tax burden imposed by inheritance tax by further increasing all thresholds.”

All three government parties accepted the inheritance tax cuts in the latest budget.

I don’t understand how premises that are not considered suitable for international protection accommodation suddenly become usable for a crèche for young children

However, the parties fought over some positions when seeking to take credit for the tax cut.

Fianna Fáil’s new political commitment comes amid growing divisions within the coalition as the three parties seek to differentiate themselves with voters before the country goes to the polls.

It emerged this week that Fine Gael and Fianna Fáil oppose a Green Party strategy to reduce road traffic and introduce polluter-focused taxes on motorists.

However, Green Party leader Roderic O’Gorman insisted he would continue to push for the plan to be approved by this government, despite resistance from his coalition partners.

Green Party leader Roderic O’Gorman. Photo: PA

Mr O’Gorman added that Fine Gael’s proposal to examine whether public buildings unsuitable for international protection accommodation can be used for nurseries “does not seem well thought out”.

“I don’t understand how premises that are not considered suitable for international protection accommodation suddenly become usable for a nursery for young children,” Mr O’Gorman said.

He explained that the crèches are specially designed to comply with the regulations.

“There are specifications that are required in terms of Tusla regulations, in terms of size, in terms of sanitary facilities, sometimes in terms of kitchen facilities.

“These are tailor-made buildings, and the idea that we can install them anywhere does not seem well thought out to me.

“But again, I’m just reacting to the article I saw.”