Overview of the findings
A Royal London Ireland survey, conducted by iReach among 1,000 adults nationwide, shows a strong public appetite for shielding the family home from inheritance tax. The results indicate 83% of adults are in favour of inheritance tax relief for the family home, while 58% strongly support removing the family home from inheritance tax thresholds. Only 5% overall oppose such changes, underscoring broad backing for reform ahead of the upcoming budget.
The emotional and economic case for relief
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 the family home often represents security for the next generation: “for most people, a family home is not just an asset, it is where they have grown up and where they may continue to visit regularly with their own children to see grandparents.”
Current rules and what’s at stake
Under current rules, children can inherit a home or other valuables worth up to €400,000 before Capital Acquisitions Tax is applied. After that threshold, the tax rate is 33%. The 33% rate has been in place since 2012, while the thresholds have fluctuated in the years since the financial crisis. With Dublin house prices typically well above €400,000, many argue for a broader exemption or higher thresholds as a practical reform rather than a full exemption.
Public understanding and gaps
Experts noted a disconnect between strong views on relief and understanding of how inheritance tax actually works. The survey found that 43% correctly identify the €400,000 threshold for children, while many respondents either overestimate or underestimate the tax-free amount. Across age groups, those over 55 were more likely to be informed (55%), compared with 26% of 18-24-year-olds, suggesting room for better public education on estate planning and tax rules.
Policy options and what might come next
Royal London Ireland cautioned that while there is broad support for family home relief, any approach must be fair. The survey also showed that a large number of respondents believe there should be restrictions on what people can inherit tax-free, indicating demand for reform that preserves incentives for home ownership while addressing equity and revenue concerns. Two broad policy paths are often discussed: widening the current bands or moving toward a full exemption for the family home. Given Dublin’s housing market, widening bands could be a pragmatic step even if a complete exemption remains politically challenging. The findings place pressure on policymakers ahead of the budget, highlighting that public expectations may outpace current awareness.
Conclusion
As inheritance tax policy discussions continue, the balance between fairness and fiscal sustainability will shape any reform. The Royal London Ireland survey suggests a public ready to ease the burden on families while demanding clear, fair rules. Whether the budget will reflect these views remains to be seen, but the appetite for reform is unmistakable and likely to influence policy debates in the coming months.
