Ireland’s Inheritance Tax Debate: Survey Reveals Broad Backing for Family Home Relief
A new survey commissioned by Royal London Ireland and conducted by iReach among 1,000 adults nationwide shows a clear public appetite for reforming inheritance tax rules, particularly regarding the family home. Ahead of next week’s budget, the results suggest policymakers have broad political cover to consider changes that could ease the burden on families while maintaining a fair tax system.
The numbers behind the survey
The poll highlights three key findings. First, 83% of adults are in favor of some form of inheritance tax relief for the family home. Second, 58% strongly support removing the family home from inheritance tax thresholds. Only 5% overall strongly oppose any change. Third, the research reveals a notable gap in public understanding: 43% correctly identify the €400,000 threshold for children, while many either overestimate or underestimate the tax-free limit.
Why the family home matters
For many Irish families, the family home is more than an asset; it embodies memories and continuity. The survey’s author, Joe Charles of Royal London Ireland, framed the issue as both economic and emotional: easing the burden of inheritance tax on the family home could help secure a home for the next generation and support ongoing visits with grandparents.
Policy implications ahead of the budget
Royal London Ireland said the appetite for change is clear, with the poll indicating support for reform but also a demand for fairness. While many back some form of relief for the family home, there is also a desire to ensure reforms are structured to be fair and sustainable rather than sweeping exemptions that could erode tax revenue.
What the reform could look like
Experts note that the current Capital Acquisitions Tax rate of 33% has been in place since 2012, with thresholds having fluctuated in the past decade. Because the average Dublin house price now far exceeds €400,000, some argue that widening the bands or updating thresholds more regularly could be a practical step—even if a full exemption remains contentious. The aim would be to balance intergenerational security with fiscal responsibility.
The risk of confusion
Despite strong views on family home relief, the public remains unclear on the tax’s basics. The survey shows 55% of those aged over 55 correctly identified the €400,000 threshold, compared with only 26% of 18- to 24-year-olds. The Royal London Ireland team cautions that misunderstandings could lead to surprise tax bills and inadequate planning for estates.
What this means for homeowners and future planning
For homeowners, the message is both hopeful and cautionary. There is broad support for shielding the family home, but reform proponents emphasize that changes must be designed to be fair and transparent. As the housing market evolves, individuals may need to revisit wills, executorships, and beneficiary arrangements to reflect potential reforms and to avoid unnecessary tax surprises for future generations.
Conclusion
As Ireland gears up for the budget, public sentiment evident in the Royal London Ireland survey suggests momentum for changes to inheritance tax rules. Whether policymakers choose to widen relief bands or introduce targeted exemptions, the central idea is clear: protecting the family home is seen as a key element of intergenerational security and homeownership, while preserving a fair and workable tax system.
