Inheritance tax will not be abolished in next month’s budget, the Minister for Finance has said. 

Taoiseach Simon Harris has hinted there would be changes in this area and called the current framework “punitive”. 

Currently children are able to inherit €335,000 from their parents before they are taxed at 33%. 

Former Fine Gael TD Alan Shatter has launched a campaign to scrap it but Minister Jack Chambers insisted a Capital Acquisitions Tax is necessary in the current economic climate. 

“I think abolishing it completely doesn’t represent the wider equity we want to see in our country and our society,” he said. 

“I think for progressive changes in different budgets in the context of property prices increasing, [it] is important but it’s important to have Capital Acquisitions Tax as a revenue generating measure.” 

Apple billions

Minister Chambers also defended the Government’s decision to fight the Apple tax case. 

“This judgement marks the end of what is a complex and long-running legal case,” he said. 

“At all times, the advice received by Government was that there was a clear chance of winning the case and the argument for acting to protect our national tax sovereignty remains as valid today as it was when the case was first taken. 

“Ireland argued throughout the process there were no special deals for any tax payers and this remains the positions.” 

Minister Chambers also said the Government is still examining how best to spend the windfall.

Main image: Jack Chambers. Picture by: Leon Farrell / Photocall Ireland