Dáil Éireann Debate, Thursday - 20 February 2014
81. Deputy Michael McGrath asked the Minister for Finance his views on whether the capital gains tax exemption for property purchases is having a detrimental impact on the ability of owner occupiers to purchase family homes; and if he will make a statement on the matter. [8833/14]
View answerI assume that the Deputy is referring to the capital gains tax relief for land or buildings acquired in the period commencing on 7 December 2011 and ending on 31 December 2014 provided for in Section 604A Taxes Consolidation Act 1997, provided that the property is held for a period of at least seven years subsequent to purchase.
The Deputy is no doubt aware that there is no CGT charge in respect of the sale of a family home. The main impact of the introduction of the exemption would have been in the commercial property area, including buy-to-lets. Concerns have been expressed about the residential property market in Dublin. However, these concerns relate largely to issues of supply of certain types of property in the city. I am not aware of any indications that the CGT exemption measure is an issue in this regard. Furthermore, such supply side pressures do not appear to be a feature of the property market nationally.
I have no intentions of stoking another property bubble and this is reflected in the fact that the CGT exemption measure is time-bound and of relatively short duration. I will, however, continue to closely monitor developments in the property market, with a view to determining appropriate measures that need to be taken or amended.
