The Minister for Finance has changed the way capital acquisitions tax is calculated.
At present all gifts and inheritances taken since June 2nd, 1982 are aggregated for the purposes of arriving at the rate of tax for a current gift or inheritance. But in future only those gifts and inheritances taken since December 2nd, 1988 will be taken into consideration for tax purposes. "Bringing forward the date for aggregation in this way will ease the burden of compliance for both the taxpayer and the Revenue Commissioners," Mr McCreevy said.
He also increased the annual small gift exemption limit from £500 to £1,000. This limit was last increased in 1978. The cost of both these changes is estimated at just more than £6 million in a full year.