Likely? I wouldn’t have thought so.My pension fund target is 800k because I can take 25% tax free up to 200k limit.
I'm thinking however is that likely to increase?
It depends on your time horizon.Likely? I wouldn’t have thought so.
With the rise of Sinn Fein/IRA and a general drift to the left, plus wokeism, I think it’s naive in the extreme to think “almost certainly yes” in the context of things like the €200k/€800k/€2m “limits”.It depends on your time horizon.
Within five years I would think no. Within 30 years I would think almost certainly yes.
I wouldn’t be so sure.Within five years I would think no. Within 30 years I would think almost certainly yes.
The thresholds for CAT have been changed up and down over the years due to fiscal necessity then political pressure as asset prices rose.Given the projected changes to our old age dependency ratio over the coming decades, I can’t see how the State could afford to make our pension regime any more generous, even in nominal terms.
In a few decades there may be a few thousand retirees hit every year by a €2m SFT where it's more likely a few hundred every year today. This is a large and growing group who will exert political pressure.
Make that "begrudgery".The thresholds for CAT have been changed up and down over the years due tofiscal necessitythen political pressure as asset prices rose.
Agreed.Even if it was €1 million today, I think that the political pressure applied by those who want it raised would be far exceeded by the opposing pressure from those who would scream that such a move is "pandering to the needs of the wealthy fat-cats etc."
Yes, but with no reference to things like ISAs which form part of retirement planning in the UK.Agreed.
It's also worth noting that Sinn Fein have proposed reducing the SFT to €1.2m, to bring us in line with the lifetime allowance up North.
Tax revenues fell 30% 2008 to 2010 which everyone forgets. Every tree had to be shaken to keep the lights on.Make that "begrudgery".
Over the long run it gets caught in inheritance though. There is an extreme point where a very high CAT rate discourages wealth accumulation but over a lifetime (and a little after!) it's a very hard tax to avoid. I have little doubt that in the long run higher CAT rates do raise more revenueIronically, a higher CAT rate tends to depress the yield from CAT as it discourages the making of lifetime gifts.
Discouraging CAT-liable gifts was a funny way to go about assisting that effort.Tax revenues fell 30% 2008 to 2010 which everyone forgets. Every tree had to be shaken to keep the lights on.
Not really. We're currently inching back to the (not very) old Irish tradition that property only changes hands when its owner is on their deathbed, and that state of affairs, with effects as varied as crumbling, moribund villages, city centre dereliction and a housing crisis, is doing little good for anyone, least of all the exchequer.Over the long run it gets caught in inheritance though. There is an extreme point where a very high CAT rate discourages wealth accumulation but over a lifetime (and a little after!) it's a very hard tax to avoid. I have little doubt that in the long run higher CAT rates do raise more revenue
Isn’t that neocolonialism?Agreed.
It's also worth noting that Sinn Fein have proposed reducing the SFT to €1.2m, to bring us in line with the lifetime allowance up North.