Inheritance tax reform would boost value of windfallsNeale Richmond opens the door to significant reform of gift and inheritance tax as the current model does not reflect modern families Tue, 08 Sep, 2026 – 06:05Tadgh McNally, Political Reporter
An overhaul of inheritance tax to boost what people can receive is needed because the current model does not reflect modern families, a Government minister has said.
Foreign affairs and trade minister of state Neale Richmond has opened the door to significant reform of the tax, telling the Irish Examiner there is an “appeal” to change rules on the maximum amount that can be received in a person’s lifetime.
Currently, people are permitted to receive tax-free gifts up to €460,000 across all three categories of inheritance tax for their entire lifetime. Any gifts beyond this threshold are taxed at a flat rate of 33%.
When asked if the Government might consider moving away from this cumulative system on the person receiving the gift and instead focus on the individual who is bequeathing the gift, Mr Richmond said that it could.
“There can be a large gap between one parent passing away and another passing away. Equally, people can find themselves in a very different position financially when that happens,” he said.
“Maybe an inheritance that they received quite some time ago is now preventing them from inheriting the family home. It’s potentially one that could be looked at.”
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Mr Richmond said the fundamental change in how inheritance tax works would likely take place over a longer period rather than in a single budget.
The Fine Gael minister said he did not believe the policy would be to make one big singular change to inheritance tax, instead signalling an incremental change to rates.
Government ministers have repeatedly signalled intent to increase the threshold for inheritance tax, with Taoiseach Micheál Martin saying he is particularly conscious of people without children.
Currently, the threshold at which capital acquisitions tax is payable for a gift from a parent to a child is €400,000. However, the threshold for gifts to siblings, nieces, nephews, and grandchildren is set at €40,000.
For all others, including close friends and unmarried partners, the ceiling is €20,000.
“What is the impact for those who don’t necessarily have children, for people who are looking to leave to siblings, nieces, nephews,” Mr Richmond asked.
“There is quite a clear inequality about that in those who have children, and I think that’s something that’s a wider policy piece as opposed to an immediate budget action.”
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Mr Richmond said every budget comes down to choices, saying that he believes the top priority of the Government should be on a “comprehensive income tax package”.
“There is scope potentially to do something with inheritance tax, but the priority does have to be income tax bands,” Mr Richmond said.
It comes as public expenditure minister Jack Chambers said workers would receive a “few hundred euro” as a result of October’s tax package, describing the upcoming adjustments as “modest”.
Speaking at the Fianna Fáil think-in Tullamore, Mr Chambers said the Government wants to alleviate the tax burden in a “progressive and sustainable way”.
- Tadgh McNally, Political Reporter
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