Niall Collins
Question:111. Deputy Niall Collins asked the Minister for Finance if the programme for Government commitment (details supplied) will be implemented fully in 2017; and if not, the reason therefor. [40827/16]
View answerFriday, 16 December 2016
Questions (111)
Written answers
A capital gains tax (CGT) relief was introduced in the Finance Act 2015 for entrepreneurs disposing of certain business assets. That relief superseded a CGT relief for entrepreneurs introduced in the Finance Act 2014.
The relief introduced in the Finance Act 2015 is much more broadly based than the previous relief and provided that a 20% rate of CGT applies in respect of a chargeable gain or chargeable gains on a disposal or disposals of qualifying business assets made on or after 1 January 2016 up to a lifetime limit of €1m.
As part of the progression of this relief for entrepreneurs, the Finance Bill 2016 provides that the rate of CGT on disposals of such assets on or after 1 January 2017 will be reduced to 10%.
Having reviewed the options available to me in advance of Budget 2017, I determined that the best way to fulfil the intent of the commitment in the Programme, within the resources available, was to reduce the rate applicable under the existing relief to 10%, without changing the other features of the relief for the moment.
The details of the relief will be kept under consideration and, depending on its operation and the resources available, can be revisited in the context of future budgets.