Plus increased excise on fuel among other things.
Apologies if this is covered elsewhere
Inheriting a 400k house. That's like getting a lottery win. The nephew is well ahead no matter what tax they have to pay.
Why should all the tax to run the country be paid by the 40 hour working week paye dope who inherits nothing?
I always tell them its going to the cats home 🤣
Well, I inherited nothing so am a PAYE 40 plus hour working dope.
i have three nephews, and two nieces. i should play them off against each other.
CAT is 33% IIRC. so no matter what the allowance is, a 400k gift will be worth 267k net anyway.
That is precisely what the landed gentry want you to believe - and fair play, you do, you fall for it
So what? You are falling for the BS, the number of people this covers will fall off as that older generation dies: for the last 20 years, people who bought a house for 500k which is bow (finally) back at 500k, paid property tax, annual interest, repairs, and upkeep, probably totalling 650k, have an asset worth 500k, and the recipient will be taxed on that?
System only works if prices rise, but if prices are flat, just get the govt to pay HAP to their mates, and remember, you will own nothing and be happy
That was history, massive increase in (nominal) wealth due to high inflation, plus then you had joining the euro and lower interest rates driving a property boom - that is over, it will not and cannot repeat
€121,275.
Or zero if the nephew lives in the house for a few years before acquiring it. Easy to avoid the tax with a bit of planning.
I dont get you......are there not exemptions?
A 400 k gift to a child will leave a tax bill of 21K vs. a gift to a niece /nephew will leave them a tax bill of 127K.
Agree with poster above about double taxation re property tax etc.
Thanks, have just started looking into it.
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/dwelling-house/index.aspx
Does it stretch to a nephew now? My brother is single, paid full price and shitloads of maintenance on an old house, and it would be a shame if this can't somehow be kept in the extended family
Thanks a lot, much appreciated.
If it was so easy, Tony Ryan and his two (idiot) sons would not have needed Michael. The one quality O'Leary has is hunger, he is doing this 30 years - most silver spoons want the good life, the easy life, O'Leary very different, a legend in Irish business
the allowance for a nephew or niece is €32.5k, after which they start paying tax at 33%.
i'm not sure if this is intended as some sort of gotcha? the tax is not levied on the benefactor, it's levied on the recipient and is (and should be) blind to the previous history of the 'gift'.
The dwelling house relief? It doesn't specify any relationship (to my knowledge).
The 'gift', even the description is an insult to those who (a) don't have farmland, and (b) don't have a business. A single person (no kids) would be better off going to Vegas and blowing it on wine, coke and hookers and then getting the govt to fund his retirement than trying to pass anything on to family members
What's your point? Is this fiscal policy driven by envy?
it's taxed at an absolute max of 33%. lower than the family members would pay on income tax.
It is not income though, plenty of other "politically connected" groups do not have to suffer this; the asset has been paid for, from after tax income, and the state comes back for more, to allocate to their preferred segments of society, including eg hotel owners who never have tourists
Maybe that's what they should do then?
Im not envious about paying a punative death tax.
My point is in response to the person who said why should paye dopes fund the country.
My point is that I have been the soldier who has paid into the system for 40 years as a PAYE worker and got no handouts. My dues are well paid. So my after tax assets should not be taxed again and the thresholds are stacked against single people with no kids.
I totally agree with your point above about leaving nothing, but I would like to leave a family member the helping hand I did not have.
The "gift" mentality is an insult. Everyone who worked hard should be entitled to leave their legacy. I did not sit for hours on the M50 for hours over years to fund the Govt when I go.
Maybe back to the very basic working class mantra of "you have to own your own home and they cant throw you out" but that is who I am.
Great post, you really get to the heart of it.
Money that has been taxed "on the way in" should not be taxed "on the way out", irrespective of family status.
There are paths for the wealthier to avoid this, pathetic for owners of farmland (not farmers) and business owners, but not for PAYE people. We get fcuked.
I think you're glossing over the 'family advantage' part. Wealth passed down the generations ensures a more equitable society won't happen.
Innovation & entrepreneurship is much easier when you've family money to fall back on or bail you out.
You are essentially saying money/assets can't get taxed twice which is a ludicrous standpoint to take.
Why?
Where do I say that? I pay 50% or whatever, I pay 21% or whatever on everything beyond that ex food, I pay VRT on that if I decide I want a car: of course income is taxed over and over and over and over again, all to what benefit? I then pay property tax, refuse charges etc.
Nobody ever said income only gets taxed once
What does 'money that gets taxed on the way in shouldn't get taxed on the way out' translate to then?
You don't pay 50% income tax and there's no 21% VAT rate.
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