No doubt a collective sigh of relief was heard when the Minister for Finance, Mr Charlie McCreevy, recently indicated that he would comprehensively review Capital Acquisitions Tax (CAT). Many individuals had become liable for significant amounts of tax in circumstances that were not originally envisaged for these gift and inheritance taxes, Institute of Chartered Accountants in Ireland (ICAI) tax spokesman, Mr Kieran Ryan has said.

These taxation levels came about largely because of the rapid increase in the value of some assets and houses in particular. For example, an only child living at home, perhaps having given up work or work opportunities to care for a parent, inheriting a family home valued at £400,000 (€507,895) would face a CAT bill of more than £77,000.

Another area expected to be reviewed is the relief applying to family-owned businesses. The Minister is expected to outline his proposals in his Budget speech on December 1st.