83pc of adults in Ireland support inheritance tax relief for the family home

• 83% believe the family home should be exempt from inheritance tax
• 58% strongly support removing the family home from inheritance tax thresholds
• Royal London Ireland survey shows overwhelming public appetite for change in inheritance tax rules

“The vast majority of adults living in Ireland (83pc) believe the family home should be exempt from inheritance tax, according to our recent Royal London Ireland national survey. Of these, nearly six in ten (58pc) say they strongly support removing the family home from inheritance tax bands, clearly showing public appetite for change.”, said Joe Charles, Proposition Director at Royal London Ireland.

The survey from Royal London Ireland, a leading provider of life insurance and pensions in Ireland, found that only 5pc overall strongly oppose the family home being removed from inheritance tax bands.

Mr Charles continued,

“These results show just how strongly people feel about easing the burden of inheritance tax on the family home. For most families, a house isn’t just an asset, it’s where they have grown up and where they may continue to visit regularly with their own children to see grandparents. Additionally, it’s security for the next generation, whether it be to potentially move in to or sell to buy their own home. It’s clear from these research findings that many people believe the current inheritance tax system risks putting that in jeopardy.”

Conditional Support

While broad support is clear, many respondents to the Royal London Ireland survey still believe there should be some restrictions. Almost three in ten men (28pc) and one in five women (22pc) say that relief should possibly come with conditions or limits - suggesting that while people support reform, they also expect it to be fair.

Opposition overall remains limited:

• Only 5pc overall “strongly oppose” the family home being removed from inheritance tax bands.
• Women are more likely to “strongly” back the idea of tax exemption for the family home than men (65pc vs 51pc).
• Men are nearly twice as likely as women to oppose full relief (15pc vs 8pc).
• Just 11pc of the population oppose the suggestion of an exemption, with the highest levels of opposition seen among younger adults (25-44).
• Regionally, Dublin (15pc) and Munster (13pc) show the highest levels of opposition.
• Just 5pc of people overall said they had no opinion, or “didn’t care”, though this rose to 10pc among those aged 45–54.

Balanced solution

“What’s clear is that families are looking for a balanced solution and that people understand the need for inheritance tax on some items. Many are open to rules and limits, but the family home is seen differently and viewed in a different perhaps more emotional context, than other financial assets.” added Mr Charles.

• Support was strongest amongst those aged over 55, with 67pc “strongly” in favour with a further 20pc saying they would support it.
• 31pc were in the middle, being somewhat supportive, possibly with some limits and somewhat opposing due to fairness.

Inheritance Tax Confusion

Experts at Royal London Ireland report that despite strong views on family home relief, many are still unclear about the basics of inheritance tax. The Royal London Ireland survey found that 43pc correctly identify the €400,000 threshold for children.

Others significantly over- or underestimated:

• 27pc believe the threshold is €200,000, a figure not seen since 1990¹.
• Women are more likely to believe the lower threshold applies (33pc) than men (21pc).
• 18pc believe the threshold is €600,000 or more - despite the highest it’s ever been being €542,544 in 2009¹.
• 12pc in total think there’s no inheritance tax for children, rising to 20pc among those aged 45–54.

Across the age groups, those aged over 55 are the most likely to be informed, with 55pc identifying the €400,000 threshold correctly, which Royal London Ireland contend is likely due to greater experience with estate planning. This compares to 26pc of those aged 18-24.

 “These misunderstandings could mean people aren’t properly prepared for the impact of inheritance tax or may even face unexpected tax bills down the line.”, Mr Charles noted.

The current rate of Capital Acquisitions Tax on inheritance has remained at 33pc since 2012, while thresholds have fluctuated significantly, especially in the years following the financial crisis, and in fact is less than it was a number of years ago¹ despite the sharp rise in income levels and the value of housing.

The Royal London Ireland research highlights a disconnect between public expectations and awareness of inheritance tax rules. While most people back exemptions for the family home, confusion over tax thresholds are also evident.

“There’s clearly a need for better public understanding and a strong demand for policy reform,” concluded Mr Charles. “We all know that there are lots of demands and areas worth considering in the upcoming budget. But this item seems to resonate with the Irish public. With the average price of a house well over €400,000 in Dublin², even widening the inheritance tax bands would be a pragmatic good start, if not full exemption for the family home.

"Whether you’re planning your own estate or dealing with an inheritance, it’s vital to get financial advice early and know where you stand. Within the current inheritance tax regime there are estate planning methods available, so we always recommend people engage with a Financial Broker for tailored advice and plans to meet their individual needs.”

^{1 Revenue.ie: Historical CAT groups, group thresholds and rates: In 1990, the threshold for Group A (which includes children) was €198,079. This rose to €204, 936 in 1991. In 2008 the Group A threshold was €521,208.}

^{2 CSO.ie: Residential Property Price Index July 2025: The median house price, in the year to July, in Dublin was €490,000.}