Inheritance tax rates will be raised on large fortunes to plug the €900m gap left by the two previous tax reforms.
In the case of fortunes over €4m, the last two tax bands for direct heirs (in 2010 these were €889,514-€1,779,029 and €1,779,029 upwards) will have their tax rates raised 5% to 40% and 45% respectively.
The renewal period for making lifetime gifts, which take advantage of the €156,974 tax-free threshold for direct heirs, will be extended to ten years. In other words, you will only be able to make such donations once in a decade rather than the current six year renewal period.
Tax reductions on donations related to the age of the donor will also be scrapped.