Friday, 6 September 2019

Questions (67)

Michael McGrath


67. Deputy Michael McGrath asked the Minister for Finance the estimated full-year cost of increasing the entrepreneurial relief for capital gains tax to 12.5% and removing the lifetime limit of €150,000; and if he will make a statement on the matter. [34895/19]

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Written answers (Question to Finance)

It is assumed the Deputy is referring to increasing the capital gains tax rate in respect of the revised CGT Entrepreneur Relief from 10% to 12.5% and removing the lifetime limit which is currently €1 million.

I am advised by Revenue that on the basis of tax returns associated with 2017, the estimated tax gain from increasing the tax rate in respect of Entrepreneurial relief to 12.5 per cent is in the region of €9 million.

In relation the tax cost of abolishing the limit, the estimated tax cost of various  changes to the limit are available on page 14 of the Revenue Ready Reckoner, which is available at The tax cost of abolishing the limit would exceed these published costs.

It should be noted that these gains and costs do not take into account the impact of any behavioural change as a result of the proposals. Under the assumption of no behavioural change, the Ready Reckoner shows that increasing the lifetime to €15m could cost around €84m. The tax cost of completely abolishing the lifetime limit would exceed this, but it is not possible to accurate estimate the cost based on the available data.

Question No. 68 answered with Question No. 64.