Finance Act 2012 has now been signed with effect from 31 March 2012. Full details of it as signed can be found on this link.

In the gift/inheritance tax area, changes since the Budget announcements are            

  • The 'rounding up' of the remaining group thresholds so now the thresholds are

                 for group 1 eg parents to children €250,000

                 for group 2 e.g. between siblings €33,500

                 for group 3 e.g. strangers €16,750

  • Indexation that had previously applied has now been abolished so these thresholds are fixed for the foreseeable future.
  • The payment date for CAT is shifted back to 31 October in line with the income tax and CGT payment dates, last year it was at 30 September
  • The extension of the term 'discretionary trust' to entities such as foundations
  • Specific anti avoidance legislation has been introduced for the use of general powers of appointment
  • Restriction in the agricultural relief definition of the 'farmer test' for deduction of debts for the family home - only debts for the purchase, improvement or repair of the family home will be deductible.
  • There is no longer the requirement for the farmer to remain Irish resident for agricultural relief
  • Confirmation that the discretionary trust payment regime remains as per the pre FA 2010 rules i.e. 4 months.


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