Relevant Matter
Matters involving public funds
Public Policy Area
Budgetary matters
Period
1 May, 2018 to 31 Aug, 2018
Specific Details
Law Society Pre-Budget Submission 2019 on issues of Probate & Taxation
Intended results
The Society focused on four key areas in making this submission, 1. Looking after those most in need. 2. Keeping Competitive and Growing. 3. Administrative and technical issues which have been raised previously, and 4. The manner in which the Finance Bill and related legislation is introduced.
Qualifying benefits of permanently disabled individuals: The Society recommended a reversion to the original application of Section 84 of the Capital Acquisitions Tax Consolidation Act, 2003 in respect of qualifying benefits of permanently disabled individuals.
That there is an anomaly regarding the taxation of financial dependant cohabitants, where provision is made either by agreement or by a court order. Effectively, the current legislation encourages parties to litigate as the tax treatment is less onerous on those who proceed to Court, rather than through agreement. We see no policy rationale for the distinction.
In respect of Fair Deal: In calculating the assets of a person applying under the Fair Deal scheme a percentage of the capital value of their house is taken into account for the first three years. We would recommend that where a house which would qualify as a principal private residence is sold then where the sales proceeds are retained the Fair Deal applicant should be assessed on the same basis as if the house had not been sold.
A penalty exists for co-habitants where the co-owner dies: Section 52 of the Finance Act, 2016 effectively removed the relief from all inter vivos transactions, save to a “dependant relative” as defined. As a result, qualified cohabitants continue to be excluded from the relief inter vivos and the dwelling that both live in can only pass on death.
Higher tax on qualified co-habitants on inheritances: should a qualified cohabitant fail utterly to provide for a surviving qualified cohabitant, any application by the qualified cohabitant for provision under s. 194 of the Civil Partnership Act, 2010 will pass free from CAT. This has the outcome of encouraging a qualified cohabitant to fail to make proper provision as litigation will result in the surviving qualified cohabitant receiving proper provision free from CAT.
Name of person primarily responsible for lobbying on this activity
Ken Murphy, Director General
Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?)
No
Did you manage or direct a grassroots campaign?
No
Was this lobbying done on behalf of a client?
No
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Submission (1)
See our full submission, including detailed recommendations at https://lawsociety.ie/policyandlawreform
Designated public officials lobbied
The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them.
As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.
Regina Doherty
Minister (Department of Employment Affairs and Social Protection)
Paschal Donohoe
Minister (Department of Finance)
Heather Humphreys
Minister (Department of Business, Enterprise and Innovation)