New Ross Councillor Calls for Further Inheritance Tax Reform Following Budget 2027

Independent Ireland's Finance Spokesperson, Wexford Councillor Michael Sheehan, has criticised the Government for failing to address what he describes as significant inequalities in Ireland's inheritance tax system.

Speaking following the announcement of Budget 2027, Councillor Sheehan accused the Government of failing to honour commitments to reform inheritance tax, particularly for people who do not have children.

While the Budget introduced increases to all three Capital Acquisitions Tax thresholds, the longstanding differences between the categories remain.

Under the new rules, which took effect on October 7th, children can inherit up to €420,000 tax-free from a parent.

However, the threshold for siblings, nieces and nephews is generally €44,000, while unrelated beneficiaries, including friends, are subject to a €22,000 threshold.

Inheritance tax of 33% applies to amounts above the relevant thresholds, subject to any applicable reliefs or exemptions.

Councillor Sheehan described the disparity as deeply unfair, arguing that people without children should have greater freedom to leave their homes, savings and other assets to loved ones without significantly higher tax implications.

His criticism follows months of campaigning by EDIT, the End Discrimination in Inheritance Tax group, which has called for a more equitable system.

The campaign has previously highlighted the difficulties faced by people who wish to leave their estates to nieces, nephews, siblings or close friends rather than children.

Councillor Sheehan confirmed that Independent Ireland intends to work alongside the campaign group over the coming months to press for further changes through the Oireachtas.

While the Government increased inheritance tax thresholds in Budget 2027, it stopped short of introducing the wider reforms sought by campaigners.

The Government has previously pointed to the potential cost to the Exchequer of equalising inheritance tax thresholds across different categories of beneficiaries.