Dáil Éireann - Volume 481 - 08 October, 1997

Written Answers. - Inheritance Tax.

95. Mr. Durkan asked the Minister for Finance whether he will consider improving inheritance tax thresholds in the 1998 budget; and if he will make a statement on the matter. [15828/97]

Minister for Finance (Mr. McCreevy): The yield from capital acquisitions tax was £84 million in 1996 of which over £58 million relates to gift and inheritance tax. Any significant increase in the capital acquisitions tax thresholds, beyond the annual indexation in accordance with the consumer price index, would adversely affect this yield and run contrary to the tax reform strategy of recent years which has been to maintain as broad a tax base as possible and to redress the tendency for earned income to contribute an increasing share of total revenues. It is considered that the present capital acquisitions tax thresholds strike a fair balance between the need to ensure a broader distribution of the tax burden and the need to take due account of ability to pay. However, capital acquisitions tax policy is reviewed on an ongoing basis in the light of the preparation for the annual budget and the Deputy's question will be given full consideration in this context.