The Revenue Commissioners are to clampdown on abuse of the system whereby tax exemptions are granted on payments made by parents to their children. The Irish Times reports this week that under the new Finance Bill, the exemption could be limited to gifts/inheritance tax to children under the age of 18, or under 25 if they are in full time education. As a result, any payments made between parents and children outside of these qualifiers and over €3,000 could be taxed.
In other news, people are saving less, according to the Independent’s Charlie Weston. A Nationwide UK (Ireland) survey has shown that only three out of ten people are saving, figures which are down on last month.
Blame is laid squarely at the Government’s door. Weston notes that the Government’s policy is to encourage people with larger sums to spend instead of save, while banks are offering precious little in the way of interest. Economic fears, Weston argues, mean that people are less likely to spend, however. Meanwhile the Irish Water debacle has had the effect of scaring people into hoarding what money they have, in case of a rainy day.