Dáil Éireann Debate, Tuesday - 5 April 2022
258. Deputy Cian O'Callaghan asked the Minister for Finance the cost of, or the revenue that is foregone by, the capital gains tax exemption provided under section 604A of the Taxes Consolidation Act 1997, which provides relief from capital gains tax for certain properties; and if he will make a statement on the matter. [18372/22]
View answerThe Deputy will be aware that section 604A of the Taxes Consolidation Act, 1997 provides for relief from Capital Gains Tax (CGT) on the disposal of certain investment property purchased between 7 December 2011 and 31 December 2014, where that property is held for 7 years. The gain attributed to that 7-year period will not attract CGT. However, where the property is held for more than 7 years, relief is reduced in the same proportion that the period of 7 years bears to the period of ownership, so if the property is held for 9 years, 7/9 of the gain will be relieved.
This relief was amended in Finance Act 2017 for disposals made on or after 1 January 2018, to provide that gains on land and buildings acquired between 7 December 2011 and 31 December 2014 are not chargeable gains where the land or buildings are held for at least 4 years and up to 7 years from the date they were acquired.
I would note that the structure of the relief means that 2018 is the first year that this relief could be claimed by taxpayers.
I am advised by Revenue that detailed statistics on the relief from Capital Gains Tax under section 604A of the Taxes Consolidation Act 1997 are published on Revenue’s website at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/relief-on-disposal-of-certain-land-or-buildings.pdf.
These statistics include the cost of the relief and other information.
