Party says ‘others talked about move for years’ in what could be seen as a dig at Fine Gael
In a move that could be perceived as the party seeking to woo Fine Gael voters, Fianna Fáil’s election manifesto will pledge consistent increases in the inheritance tax threshold over the lifetime of the next government.
Yesterday, senior Fianna Fáil figures took aim at Fine Gael’s lack of action on reducing the burden of inheritance tax while in government, despite its TDs regularly calling for increases in the threshold while it was in power over the last 13 years.
“Easing the inheritance tax burden for families and workers in the economy will be a key offering in Fianna Fáil’s tax package proposals,” a Fianna Fáil source said.
“While other parties have talked about the issue for years, it was only in the most recent budget that it was delivered.
“The changes introduced by [Finance Minister] Jack Chambers allowed for the much-needed reform to ease pressure on recipients of family homes and other assets.”
In Mr Chambers’ first budget, the main inheritance tax-free threshold, which applies to children or a spouse, was raised from €335,000 to €400,000.
Inheritance tax is a death tax levied on savings and assets that were lawfully acquired. Stock image
In tandem, the threshold for parents, siblings, nieces and nephews increased to €40,000, while the category for uncles, aunts, cousins and friends went up to €20,000 tax-free.
Fianna Fáil will commit to significant increases in all three thresholds if it secures enough seats to return to government after the general election.
“The changes in Budget 2025 have been well received and will be of huge benefit to workers, families, those whose house value has increased significantly in recent years across Ireland,” a Fianna Fáil source said.
“This is a key focus area for Fianna Fáil. Budget 2025 showed the party’s delivery and recognition of this as a key issue for middle Ireland and people all over the country.
“There is a determination to go even further in the years ahead to reward hard work and ease the tax burden imposed by the tax on inheritance with further increases all thresholds.”
All three government parties agreed to the reductions in inheritance tax in the last budget.
I don’t understand how a premises that isn’t regarded as suitable for international protection accommodation suddenly becomes usable for a creche for young kids
However, there was some jockeying for position among the parties when seeking to take credit for the tax cut.
The new Fianna Fáil policy pledge comes amid increasing divisions within the Coalition as the three parties seek to differentiate themselves to voters ahead of the country going to the polls.
It emerged this week that Fine Gael and Fianna Fáil are pushing back against a Green Party strategy for reducing road traffic and introducing polluter-focused taxes on motorists.
However, Green Party leader Roderic O’Gorman insisted he will continue to push for the plan to be signed off on by this Government, despite resistance from his coalition partners.
Green Party leader Roderic O’Gorman. Photo: PA
Mr O’Gorman added that Fine Gael’s proposal to examine whether state-owned buildings unsuitable for international protection accommodation can be used for creches “doesn’t seem well thought out”.
“I don’t understand how a premises that isn’t regarded as suitable for international protection accommodation suddenly becomes usable for a creche for young kids,” Mr O’Gorman said.
He said creches are specially designed to adhere to regulations.
“There are specifications that are required in terms of Tusla regulations, in terms of size, in terms of toilet facilities, in terms of sometimes cooking facilities.
“They are bespoke buildings, and this idea that we can just throw them up anywhere doesn’t seem to me well thought out.
“But again, I’m just responding to the article that I saw.”
