Neale Richmond
Question:279. Deputy Neale Richmond asked the Minister for Finance if he has considered raising the capital gains tax allowance; and if he will make a statement on the matter. [7493/22]
View answerTuesday, 15 February 2022
Questions (279)
Written answers
As with all taxes, Capital Gains Tax (CGT) is subject to ongoing review, which involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions.
The current approach to CGT in Ireland is a flat rate of 33% for all gains, together with a range of targeted reliefs. The reliefs include an individual exemption of the first €1,270 of gains in a calendar year, as well as a range of other reliefs including principal private residence relief, retirement relief and revised entrepreneurs relief. More information on the reliefs for CGT are available at www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/what-is-exempt-from-cgt.aspx and www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/index.aspx.
I assume the CGT allowance the Deputy refers to in his question is the annual exemption for individuals in respect of the first €1,270 of chargeable gains in a calendar year that is provided for by Section 601 of TCA 1997.
As the current exemption is available to each individual annually, this is a broad based relief that applies every year regardless of previous use, so any increase in the threshold could potentially result in significant costs to the Exchequer and would require offsetting measures.
I do not currently propose to make any changes to the individual exemption of €1270.