Dáil Éireann Debate, Tuesday - 17 May 2016
235. Deputy Michael McGrath asked the Minister for Finance to outline his plans to review capital acquisition tax thresholds given rising asset prices, especially in residential property; and if he will make a statement on the matter. [10652/16]
View answerAs with all tax areas capital acquisitions tax, including the details of rates, tax-free thresholds, reliefs and exemptions, is kept under review. As part of Budget 2016 I raised the Group A threshold applying to gifts and inheritance from parents to their children from €225,000 to €280,000. This represented an increase of about 25%. I did this in recognition of the improving state of the national finances and of the concerns expressed to me by people making and receiving gifts and inheritances, particularly in a context of rising property prices.
I indicated at the time that I saw the change to the Group A tax-free threshold in the last Budget as the start of a process. The Deputy will be aware of the commitment in the Programme for a Partnership Government to work with the Oireachtas to raise the Band A Capital Acquisitions Tax Threshold (including all gifts and inheritances from parents to their children) to €500,000.
