With house prices rising across Ireland, this has pushed up the taxable value of an inheritance of a family home. A son or daughter is able to receive up to €225,000 tax free from their parents, in their lifetime. This tax free amount used to be as much as €434,000, however with the recession government decided to lower the threshold amount significantly, in line with falling house prices.
This will mean that, assuming that you or your three siblings have not received any prior gifts from your parents, you can each receive an inheritance amount of €225,000 tax free. Your share of the house will be €300,000, therefore you will be obliged to pay 33% capital acquisitions tax on the difference of €300,000 less €225,000, i.e €75,000. You will have an approximate inheritance tax bill of €24,750.
You should get in touch with your accountant for the correct advice and potential tax savings tips, as soon as possible.
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