Dáil Éireann Debate, Thursday - 1 October 2015
75. Deputy Michael McGrath asked the Minister for Finance in respect of capital gains tax entrepreneurs’ relief, to indicate the cost of simplifying the relief to provide a 10% capital gains tax rate on entrepreneurial gains up to €10 million; and if he will make a statement on the matter. [33837/15]
View answerThere are gaps in the data available to the Revenue Commissioners which prevent a definitive costing being provided for this proposal. Tax returns data available to the Commissioners do not in all cases clearly distinguish between disposals of business assets and non-business assets. Furthermore, it is not clear from the question what would be considered "entrepreneurial" gains and the Revenue Commissioners have no reliable data to make distinctions between gains on that basis. Subject to these caveats it is very tentatively estimated that the cost of introducing a €10 m cap and 10% CGT rate for individuals could cost in excess of €130 million in a full year. This assumes that the reduced rate would apply in respect of all quoted and unquoted shares, commercial property disposals by proprietary directors and self-employed individuals and also agricultural land disposals by farmers. This estimate assumes no behavioural impact.
