Dáil Éireann debate -
Tuesday, 10 Dec 2002

Vol. 559 No. 1

Written Answers. - Tax Code.

Jan O'Sullivan

Question:

79 Ms O'Sullivan asked the Minister for Finance his proposals for increases in the capital gains tax exemption limits in regard to the commitment given in An Agreed Programme for Government; and if he will make a statement on the matter. [25565/02]

Minister for Finance (Mr. McCreevy)

There currently is an annual exemption from capital gains tax of €1,270. If an individual's chargeable gains in a tax year are no greater than this amount, that individual has no capital gains tax liability in respect of those gains. If the chargeable gains are greater than this amount, €1,270 is deducted from the gains before calculating the liability. Any unused exemption cannot be carried forward into the next tax year. This exemption is an individualised one, i.e. a person may not benefit from any unused exemption by his or her spouse.

The programme for Government undertakes to increase the capital gains tax exemption limit. All such commitments however must be viewed in the context of the full period of office of the Government and in the context of the budgetary and economic policy provisions in the Government programme, in particular, the reference to responsible fiscal policy and the need to keep the public finances in a healthy condition.

As the Deputy will be aware, I did not believe that the circumstances were appropriate to raise this exemption on the occasion of last week's budget but the matter will be kept under review.

Question No. 80 answered with Question No. 54.