"Childless couples are being discriminated against when it comes to CAT"

T

T McGibney

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Moderator's note. I have moved these posts from the longer thread on CAT as the issue seems to be getting aired again

torblednam said:
Only a small minority of, by definition, quite wealthy people will ever receive a gift or inheritance of a scale that will mean they have to pay the tax.
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Yet if you inherit from an uncle or aunt, your tax free bequest won't extend to the price of a new car.

Where is the justice and equity in that?
 
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T McGibney said:
Yet if you inherit from an uncle or aunt, your tax free bequest won't extend to the price of a new car.

Where is the justice and equity in that?
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If one accepts Inheritance tax as a concept, it’s perfectly fair and just.

The State is differentiating between close family units and uncles/nephews/etc.

There are even provisions in the Taxes Acts which allow non-parents to be treated like parents in certain circumstances.
 
Gordon Gekko said:
If one accepts Inheritance tax as a concept, it’s perfectly fair and just.

The State is differentiating between close family units and uncles/nephews/etc.

There are even provisions in the Taxes Acts which allow non-parents to be treated like parents in certain circumstances.
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It is fundamentally different as you are treating two people completely different one who has offspring and one who does not.
 
Gordon Gekko said:
If one accepts Inheritance tax as a concept, it’s perfectly fair and just.

The State is differentiating between close family units and uncles/nephews/etc.

There are even provisions in the Taxes Acts which allow non-parents to be treated like parents in certain circumstances.
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Hardly. One sibling inherits €300,000 from a parent. No tax.
Another inherits the same sum from an aunt. Loses nearly a third of it.
Crazy state of affairs.
 
It will absolutely need to change in the coming years as our demographics change...there will be less families with children and less children per family so people will demand change to a tax that assumes the same family types that were formed 30 years ago and before. And also to correct the requirement of legal marriage that allows tax free transfers between committed partners.
 
The Horseman said:
It is fundamentally different as you are treating two people completely different one who has offspring and one who does not.
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You’re making the fatal mistake again. CAT is levied on the receiver not the giver. The person dying pays 0 CAT…because they are dead

So your statement should read, you are discriminating against people who don’t have parents vs those who do…fringe cases I expect
 
Zion2022 said:
You’re making the fatal mistake again. CAT is levied on the receiver not the giver. The person dying pays 0 CAT…because they are dead

So your statement should read, you are discriminating against people who don’t have parents vs those who do…fringe cases I expect
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I am well aware how the tax is charged. Every child has a parent. Not every person is a parent. But every person is someone's child.
 
T McGibney said:
Hardly. One sibling inherits €300,000 from a parent. No tax.
Another inherits the same sum from an aunt. Loses nearly a third of it.
Crazy state of affairs.
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It’s pretty clearly about the relationship the recipient had to the donor. And the immediate family unit versus people outside of that. It makes perfect sense. Money given to my daughter is different to money given to my niece.
 
Gordon Gekko said:
It’s a tax on beneficiaries. So there is no child of someone who can’t have children who’s being discriminated against.
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It is discriminatory on the receiptent and the donor. A neice/nephew can be seen as a child of a childless couple. But because they are not their biological child they are discriminated against in terms of threshold limits.
 
The Horseman said:
You have completely lost me now. A PAYE credit is to assist in the cost associated with rearing children.

I am not sure how this has any bearing on the topic being discussed. If I said a childless couple should be allowed claim this PAYE credit for a neice/nephew I could see part of the connection to the topic but other than that I don't see your logic.
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It is very simple. Whether somebody has children or does not have children has ZERO impact on the CAT they pay. They are not being discriminated against.

There is no child to avail of the CAT threshold…but they don’t exist…so how can they be discriminated against.

You can’t break the link in your own head between CAT and the provider of the inheritance which is what’s leading you to your incorrect conclusion.

The only people discriminated against by inheritance tax are those without wealthy relatives. Nobody else.
 
The Horseman said:
Biologically they are and as such they are your child irrespective if you have no relationship with them.
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Are you suggesting that it is unfair for a child whose relationship with one or both parents has broken down to be liable for inheritance tax on the inheritance they won't get?
 
Leo said:
Are you suggesting that it is unfair for a child whose relationship with one or both parents has broken down to be liable for inheritance tax on the inheritance they won't get?
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How did you get that from my post? A child who does not have a relationship with their biological parent are legally entitled to a share of an estate if the person dies intestate and can also legally challenge a will all because they are a biological child of the deceased.
 
Brendan Burgess said:
The interviewer mentioned some campaign group sounding like "Edit"?
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www.irishtimes.com

Independent ministers seek changes to inheritance tax system for adults with no children

Campaign group argues tax thresholds applying to beneficiaries of estates of childless adults are ‘discriminatory’
www.irishtimes.com www.irishtimes.com
A campaign group known as Edit (End Discrimination in Inheritance Tax) has been contacting politicians as part of efforts to bring about reforms to the capital acquisitions tax (CAT) regime, which it says is “grossly unfair”.
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I can't seem to find any website or Facebook page for them though.

Edit: some more info...
gcn.ie

Childless Irish citizens face discriminatory inheritance tax legislation, campaigners say

EDIT campaigners have warned that inheritance tax laws in Ireland are discriminating against childless citizens, including LGBTQ+ folk.
gcn.ie gcn.ie
According to End Discrimination in Inheritance Tax for Childless Citizens (EDIT), which is spearheaded by husband and wife James and Sheila Sexton, and James’ brother Kieran, the current system impacts more than one million people in Ireland. Among them are a significant number of LGBTQ+ folk, who face added barriers when it comes to growing a family, or simply do not wish to have children.
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Instagram

www.instagram.com www.instagram.com
End Discrimination in Inheritance Tax for Childless Adults. (EDIT)
Act now before it's too late for your beneficiaries. Contact your local TD to demand that the legislation is reformed.
Email: editdiscrimination@gmail.com for further details. Thank you
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See the comments - they don't seem to have a website or Facebook page - just an email address.
 
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