Thousands of people in Galway are being treated like second class citizens – just because they do not have children, Galway West TD Noel Grealish has claimed.
He said that couples and single people who did not have children of their own were effectively prevented from leaving their home to their nearest and dearest family member when they die.
Deputy Grealish said he had raised the issue in the Dáil several times, seeking a change in the inheritance tax rules that would allow a favourite niece or nephew to inherit a home in the same way as the son or daughter of other people.
“The recent Budget increased the tax-free threshold to €400,000 for a person inheriting a home from their parents . . . . but someone inheriting a home from an aunt or uncle will only get the first €40,000 tax free.
“This is despite the fact that the aunt or uncle has paid taxes the same as everyone else all their lives – and even higher taxes in the case of single people – yet when it comes to this, they are being penalised.
“It is unfair and discriminates against people who do not have children. They are really being treated like second class citizens,” he said.
Deputy Grealish added that the last Census showed that there were more than 12,000 married couples in Galway without children and more than 2,700 cohabiting couples who did not have children – along with many thousands of single people in a similar situation.
“Why should they be penalised for this? In many cases they would have every bit as close a relationship with their nephews and nieces as others have with their children. They should have a right to be treated in the same way as people with offspring.”
The Independent TD said that the most recent Daft.ie report showed that average house prices in Galway City had reached €389,000.
“So a son or daughter being left a house of this value would not have to pay a penny in Capital Acquisitions Tax under the new threshold coming into effect in January.“But a nephew or niece is only allowed about a tenth of the value tax free and has to pay 33% tax on the rest – amounting to more than €115,000.
“There is no way an average person would be able to pay that whopping tax bill, so they would have to sell the house and it goes out of the family forever.”
Deputy Grealish said that if re-elected he would continue to press for fairness on the issue and for a change in the inheritance tax rules that would not discriminate against childless people.
