Wednesday, 10 July 2019

Questions (129)

Joan Burton

Question:

129. Deputy Joan Burton asked the Minister for Finance the cost to date of the CGT entrepreneur relief by year and projected cost in 2019 and 2020; if he expects to make future changes to this relief; and if he will make a statement on the matter. [30293/19]

View answer

Written answers (Question to Finance)

It is assumed the Deputy is referring to Capital Gains Tax (CGT) Entrepreneurial Relief as provided for in section 597AA of the Taxes Consolidation Act 1997. This provision was introduced in the Finance Act 2015 and provides relief from Capital Gains Tax for individuals disposing of business investments in certain circumstances.

Statistics on the numbers availing of the Relief, and the cost to the Exchequer, are available at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/entrepreneur-relief-statistics.aspx. The most recent year for which data are presently available is 2017.

For the Deputy's convenience, the information available is presented in the following table.

Year

Cost € million

Number Availed

2016

20.4

406

2017

81.8

875

The cost of the relief is dependent on a number of variables, such as the number of individuals availing of the relief at a particular point in time or the potential gain on the disposal of assets. There are therefore a number of factors which impact on take up and in projecting the cost of the scheme for future years and it is therefore difficult to provide costs for 2019 and 2020.

In general, consideration of Capital Gains Tax changes, including any changes to individual CGT reliefs, are undertaken within the annual Budgetary and Finance Bill process. As is normal, the Deputy will appreciate that I cannot comment on any possible changes in advance of the 2020 Budget. In addition, it would be impossible for me to comment on any possible changes in respect of future Budgets.