Plus increased excise on fuel among other things.
Apologies if this is covered elsewhere
My nephew is as important to me as someone elses child is to them. My Estate should be given the same reliefs as someone's with children.
You just need to plan and structure things correctly if you want to avail of reliefs. There is a thing called favourite nephew relief whereby that nephew will be treated as being in the same category as a child.
However I disagree with your overall argument. The same argument would end up being that a distant cousin would be entitled to the same relief as an actual child.
The favourite nephew relief has very strict qualifying criteria that don't apply to PAYE workers.
A family is still a family. Whether there are two males/two females, a single female/adoptions/etc etc and they are treated in that manner. Neices are still neices and nephews still newphews.
You can help your niece/nephew without revenue "turning the screw" to the tune of 30+K. If you have ten of this type of relation you can give away 300K tax free (on them) and 33% tax on the remainder.
And what if you don't have 10? If you 3 or 4 nieces and nephews CAT will still be payable.
There is no law against being a PAYE worker and also owning a business.
They get 30K each with out paying any tax.
Would love to have gotten 30K tax free from any source!!
yeah; every single cent has been taxed and spent many times over. mention inheritance tax, and people get het up about it much more than they do if you talk about VAT, for some reason.
There might not be a law against it, but the reality is that very few full-time PAYE workers will have also have a business where their niece or nephew can work for sufficient hours per week to meet the criteria.
The exemption applies to the business only, not personal assets so CAT would still be due on personal wealth. Read the information on revenue.ie.
Well many don't love the reality that their estate will be taxed when they spent their working life paying taxes as they built it up.
What's next, have children to avoid it?
Am aware of the information. Which is why I said it can be structured that way if someone actually wants to do it. Could leave an estate of about 3.5m to a niece or nephew CAT free. It also applies to agricultural assets. If you are only leaving them 50k then not worth the hassle
I don't love a lot of things about taxation, as the vast majority of the population would mirror I'd say.
So I either accept it and reduce my taxation exposure where I can if I deem it important enough, or failing that - if all things we weighed up and I really couldnt stomach it, move somewhere I could stomach the T's and C's.
Let me tell you something, having children to avoid it - false economy - you'll be far better off finacially down the line without children.
This is what you said:
There is a thing called favourite nephew relief whereby that nephew will be treated as being in the same category as a child.
The reality is that not everyone with nieces and nephews owns a business, will have an estate worth €3.5 million or qualify for exemptions. That's what we're talking about, not the outliers and ifs and buts you're throwing out.
Irrelevant to my sentence. Read it again:
From Revenue:
The relief allows the use of the Group A threshold.
Which is what I said.
Article on it here:
You appear to be arguing that it might not suit you to do that. I never said it would suit you or any specific person. Just that it existed, placed the niece/nephew in the same category as child, and that you could structure things to avail of it if you want. Up to individuals to make their own choices.
Taxes and death are inevitable no matter where you move to. Single people without children still have family and friends and not everyone want to retire abroad. Moving doesn't change the fact that the law her is outdated, and if you leave your estate to someone back home CAT still applies regardless of where you die. Your family now just have the logistics of your funeral to deal with.
Group A threshold for business assets subject to meeting the defined criteria. So again, not everyone has a business.
Oh, that article you linked relates to a farmer. Again, not everyone is a farmer. You're either being deliberately contrarian, or you don't understand the scope and limitations of the favourite niece or nephew exemption.
There is nothing outdated about taxation law in this area. At best perhaps the tax free amount could be increased to 50K for nieces etc and 500K for kids but thats very fair - thats a lot of money tax free for doing nothing.
Advice on this, don't go having kids to try spite revenue - they win every time and you'll have far less money when you're six feet under than if you didn't have kids.
"Favourite Nephew or Niece Relief
You may qualify for Favourite Nephew or Niece relief if you receive a gift or inheritance of business assets. The relief allows the use of the Group A threshold. This is subject to conditions.
For the purpose of this relief, you are a nephew or niece if you are:
You must have worked for the disponer for the five years immediately before receiving the gift or inheritance. During these five years, you must have worked for morefor the disponer for the five years immediately before receiving the gift or inheritance. During these five years, you must have worked for more than:
The relief applies only to assets used in the business. Group B threshold applies to non-business assets.
Where the gift or inheritance includes business and non-business assets, liabilities must be apportioned between business and non-business assets."
Clear as day.
I haven't suggested having children to avoid CAT on your estate. I just asked if they was going to be suggested next.
Everyone should be able to leave their estate to relatives without a large potion being taxed at 33%.
No way should my Estate be taxed 10 times more than someone elses because I dont have children.
My wishes will be that my relatives will inherit my Estate, not the Govt. Everything I have is purchased out of After Tax income.
The death tax is an insult to people who dont have or dont want children.
We dont pay less tax in, so our Estate should not be fleeced after death.
We also don't claim maternity leave, children's allowance, free medical care for children, 2 free childcare years, back to school allowance etc. Pay the same in, get nothing back AND your estate is fleeced.
The death tax is an insult to people who dont have or dont want children
well, then, leave it to charity.
i don't, and won't, have kids
or; are you arguing that the threshold for one's children should be lowered to the same as what would be applied to an unrelated friend, for example?
No, those without children should be able to leave their estate to a relative - sibling, niece etc., without revenue claiming 33% after a small exemption and expenses. The concept of personal wealth is a fallacy when the government can and does collect a portion of it.
I am saying that the Estates of people without children should receive the same exemptions as those who do. No way should one exemption be 330K when the other is has little or none.
It is called equality irrespective of status.
we also don't have the cost of raising a child or children to or beyond the age of 18. i'm financially much better off for not having children.
the notion that someone should feel sorry for me on a financial basis because i don't have kids to efficiently pass my estate on to is not something that keeps me awake at night.
the way inheritance tax is administered has zero effect on my personal wealth.
no CGT on death...that makes sense so thats an irrelevancy.
CAT....its an interesting one.
on the 1 hand, you have someone who bought an asset with funds that were taxed so should be free to do with as you choose.
on the other hand...why should little jimmy get squat cos jimmy senior was successful.
i think like income tax, CAT should also be ratcheted up as you go through the gears. as in more CAT if the estate you leave behind is 100's of millions, vs a family that invested in a rental property 20 years ago that has increased in value.
cos in the latter case, lots of times the benefactor dont have the money to pay the CAT liability.
what i would like to see happen? increase CAT exemption to like .5m, and tax the big winners with 40% over 10m. in the grey area, i'm not sure
thats another thing i'd do away with...children's allowance.
its now a choice i think to have kids, so no subsidies
We don't have the expense, but our taxes subsidise these perks. I know the same applies to parents, all workers subsidise health care, education etc.
But it is still unfair to have a money grab on the estate of a person who wasn't a parent. We still work and contribute to the economy and should be able to benefit our relatives without them losing a huge chunk to revenue.
There is an economic rationale for child benefit payments, that's why most countries have them.
The majority of family homes are modest, and I'd imagine the families with second investment properties are in the minority.
what are you arguing for so; that children in general should not enjoy favoured status, or that people who are not your children should enjoy favoured status?
