What the survey shows
A nationwide survey commissioned by life-insurance and pensions provider Royal London Ireland and conducted by iReach among 1,000 adults reveals a strong public appetite for reform of inheritance tax. The findings show 83% of Irish adults in favour of inheritance tax relief for the family home, with 58% strongly supporting removing the family home from current tax thresholds. Only 5% strongly oppose any change. Ahead of the budget, the study underscores broad public support for rethinking how inheritance tax is applied to the family home.
Why people want relief for the family home
Proposition director at Royal London Ireland, Joe Charles, said: ‘The appetite for change is clear. These results show just how strongly people feel about easing the burden of inheritance tax on the family home.’ He added that for many families, a home is more than an asset; it is where memories are formed and where relatives may continue to visit grandparents, or where the next generation could live or buy their own home.
The sense of security for the next generation
‘It’s security for the next generation, whether it be to potentially move in to or sell to buy their own home,’ Mr Charles said. ‘It’s clear from these research findings that many people believe the current inheritance tax system risks putting that in jeopardy.’
Public understanding and misconceptions
While support for family home relief is high, the survey also finds gaps in basic knowledge about inheritance tax. Forty-three percent correctly identify the €400,000 threshold for children, while others significantly overestimate or underestimate the tax-free limit. Across age groups, those aged over 55 are most informed (55%), compared with just 26% of respondents aged 18–24. Royal London Ireland notes that misunderstandings could leave people unprepared for potential tax bills in the future.
The taxation context in Ireland today
The current rate of Capital Acquisitions Tax on inheritance sits at 33% and has done so since 2012. Thresholds have fluctuated in the years following the financial crisis. With Dublin’s average house price well above €400,000, many experts say widening the inheritance tax bands could be a pragmatic step, even if it stops short of a full exemption for the family home.
Ahead of the budget: what this means
As the budget approaches, the Royal London Ireland survey highlights a public that wants reform but also fairness and clarity. While most respondents support family home relief, they also want policies that are understandable and predictable, avoiding unintended financial shocks for future generations.
Expert cautions and next steps
Experts caution that despite strong views on family home relief, many Irish households remain unclear about how inheritance tax works in practice. The report suggests reform should balance relief with safeguards and ensure that any changes are financially sustainable and equitable. Mr Charles concludes, ‘There are clear demands for reform, but the public also expects fairness and proper understanding of how taxes apply.’
Conclusion
The Royal London Ireland survey signals broad public support for changing inheritance tax rules, particularly around the family home. With the budget looming, policymakers will weigh this sentiment against broader fiscal considerations and the goal of preserving intergenerational security in housing decisions.
