Thursday, 28 Apr 2022

Written Answers Nos. 161-180

Driver Licences

Questions (161)

Pa Daly

Question:

161. Deputy Pa Daly asked the Minister for Transport his views on allowing those born in Northern Ireland and who hold Irish citizenship to use Ireland as their place of birth on their driver's licence. [21542/22]

Written answers

Minister of State at the Department of Transport

This is a matter for the Road Safety Authority. I have referred the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

National Car Test

Questions (162)

Pa Daly

Question:

162. Deputy Pa Daly asked the Minister for Transport if he will report current waiting times for an NCT appointment in each of the NCT centres in County Kerry; and if he will make a statement on the matter. [21546/22]

Written answers

Minister of State at the Department of Transport

The operation of the National Car Test (NCT) service is the statutory responsibility of the Road Safety Authority and I have therefore referred the question to the Authority for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Safety

Questions (163)

Thomas Gould

Question:

163. Deputy Thomas Gould asked the Minister for Transport if funding is available from his Department for road safety measures and pedestrian crossings. [21568/22]

Written answers

Minister for Transport

The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Council's own resources supplemented by State road grants.  The initial selection and prioritisation of works to be funded is also a matter for the Council.

Local authorities can apply under the Department's regional and local road grant programme for funding for safety works. Applications for funding of lower cost safety improvement works under the Department’s Safety Improvement Scheme are invited in order of priority on an annual basis for consideration for funding in the subsequent year. Individual projects costing in excess of €200,000 are outside the scope of this scheme and fall to be considered under the Specific Grant Programme.

I was delighted to announce funding of €289m through the National Transport Authority (NTA) earlier this year for approximately 1,200 Active Travel projects which includes Pedestrian Crossing Schemes. A full list of the allocations is available here.

This funding will contribute to the development of almost 1,000km of new and improved walking and cycling infrastructure projects across Ireland by 2025.

Projects allocated funding under this investment programme were identified by the local authorities in cooperation with the NTA. I look forward to seeing the planned projects progress and to developing high-quality walking and cycling networks around the country through the increased annual funding over the lifetime of the Government. 

Departmental Transport

Questions (164)

Catherine Murphy

Question:

164. Deputy Catherine Murphy asked the Minister for Transport the number of electric vehicles and-or hybrid vehicles in his allocation of ministerial vehicles; and if he will provide the make and model of all vehicles in his allocation of ministerial vehicles by the year registration. [21616/22]

Written answers

Minister for Transport

I have no ministerial vehicle of any sort.

Commissions of Investigation

Questions (165)

Peadar Tóibín

Question:

165. Deputy Peadar Tóibín asked the Minister for Finance the number of commissions of investigation under the remit of his Department currently ongoing in the State; the cost of each commission to date; and the projected costs of each, in tabular form. [12559/22]

Written answers

Minister for Finance

I wish to inform the Deputy that there are currently no commissions of investigation under my Department. My Department is a stakeholder in two commissions of investigation, however these are set up under the Department of the Taoiseach.

National Asset Management Agency

Questions (166)

Pearse Doherty

Question:

166. Deputy Pearse Doherty asked the Minister for Finance the volume of development land in hectares held by NAMA for which NAMA had an interest or by which NAMA loans were secured and which were sold by NAMA in each of the years 2010 to 2022; the details of the land sold by location, size, residential zoning, planning permission and capacity for development of residential units; and if he will make a statement on the matter. [21537/22]

Written answers

Minister for Finance

NAMA have advised that they are currently compiling this information, however as the PQ requests data spanning NAMA's lifetime, NAMA are not in a position to finalise this within the given timeframe.

As a result, I will provide this information directly to the Deputy once it is available.

Banking Sector

Questions (167)

Dara Calleary

Question:

167. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the considerable difficulties being encountered by customers across the country who are seeking to change their bank accounts from banks (details supplied) to other banks; if he will engage with the Central Bank to ensure all maximum assistance and information is been provided to the public; if he will engage with the remaining banks to ensure sufficient staff resources are being put in place at branches to assist those who cannot access online banking in this process; his views on the current position in relation to the number of persons who have switched accounts to date and the number remaining to do so; and if he will make a statement on the matter. [21551/22]

Written answers

Minister for Finance

The withdrawal of KBC and Ulster Bank is a challenge facing consumers and SMEs as they need to switch their current and other accounts to new providers. It is important that the Irish banking sector rises to this challenge. All stakeholders in this process must play their part in ensuring it is carried out successfully, with minimal disruption for all impacted customers.

My priority is to ensure that each bank withdraws from the market in an orderly manner. My officials and I have emphasised the importance of this in all engagements with Ulster Bank and KBC and both banks will meet with officials and provide relevant information regarding account closures to the Department of Finance on a monthly basis.  This will help to identify any emerging trends and potential issues for consumers.

The Central Bank and I expect all retail banks, both those exiting the market and those remaining, to have plans in place to manage the impact of the broader changes and consolidation in the retail banking sector in Ireland. It is the responsibility of the individual banks to ensure that they are putting their customer first, ensuring fair treatment of customers and that customers understand what the changes mean for them.

I have been informed by the Central Bank that this week it has written to the CEOs of the five main retail banks to set out its expectations on some key items related to the account migration process.

The purpose of these letters is to reinforce and, to any extent necessary, clarify the application of the expectations set out in the Central Bank's previous letter of June 2021 and to invite the CEOs to a roundtable meeting, hosted by Director General, Financial Conduct, Derville Rowland on the following five key issues/risks:

- Notice periods

- Application of the switching process

- New provider making commercial decisions in a manner that facilitates a customer making and executing a switch

- Direct debit originators and/or other service providers

- Vulnerable customers

In terms of the preparedness of the remaining banks, the Banking and Payments Federation of Ireland (BPFI) has advised that the industry is resourcing up significantly and that over 100,000 accounts have been opened at the three remaining retail banks so far this year. The Department of Finance is engaging with the BPFI on an ongoing basis to ensure that the industry is responding to the challenge appropriately. 

I and my officials will continue to monitor and engage with the existing and remaining banks over the coming months regarding their preparedness and the progress being made on moving customers. My officials are also meeting with other financial service providers that offer current accounts to discuss how they can support customers opening new accounts because of the withdrawal of both Ulster Bank and KBC. 

Customs and Excise

Questions (168)

Éamon Ó Cuív

Question:

168. Deputy Éamon Ó Cuív asked the Minister for Finance the number of posted parcels that originated outside the European Union that were rejected by customs and returned to the sender in 2021; the steps that are being taken to reduce this number; if it is intended to introduce new regulations or change the law to deal with this issue; and if he will make a statement on the matter. [21557/22]

Written answers

Minister for Finance

Revenue, as Ireland’s Tax and Customs administration, is responsible for managing the importation and exportation of goods in accordance with the Union Customs Code and relevant national legislation and this includes goods being imported through the postal system. Customs controls are necessary to protect public health, to ensure food safety and product standards and to protect EU businesses from unfair international competition thus preserving jobs for European workers including Irish workers.

I am advised by Revenue that across the EU, electronic Customs import declarations are now required for all parcels / packages coming from non-EU countries including those coming through the postal system regardless of the value of the goods being sent. For goods being imported via the postal system, these Customs declarations are usually submitted by the postal operator on behalf of the recipient (importer) in Ireland. The information to complete the declaration is generally supplied by the exporting postal authority. Where insufficient information to complete a declaration is provided, the Irish postal authority may contact the exporting postal authority or the recipient in Ireland to gather the necessary information to enable them to complete the declaration. Alternatively, where sufficient information to complete the Customs declaration is not available, the postal operator may return the goods to the sender. It is a matter for the postal to determine, based on its business model, how to deal with instances where they do not have the data needed to complete the necessary Customs declaration.

I am further advised by Revenue, that they provide appropriate information and assistance to all importers, including the postal authority, to assist them comply with Customs obligations. However, Revenue cannot comment on plans specific businesses have in relation to the completion of Customs declarations as this is a commercial matter for each specific business as to the nature of the business model it operates. I understand that Revenue does not have statistics in relation to the number of items returned by the postal authority to senders.

The legislation governing the importation of goods is harmonised at EU level and the provisions are common throughout all Member States in the EU. It is not possible for Ireland to implement  changes that would result in non-compliance with the Union Customs Code. 

Inflation Rate

Questions (169, 170, 171, 174)

Bernard Durkan

Question:

169. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department continue to examine the contributory factors to inflation; the extent to which each and any can be controlled; and if he will make a statement on the matter. [21575/22]

Bernard Durkan

Question:

170. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the causes of inflation continue to be examined by his Department with a view to addressing these issues; and if he will make a statement on the matter. [21576/22]

Bernard Durkan

Question:

171. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which all issues deemed to be a cause of inflation are being examined by his Department with a view to ensuring that unattributable inflation does not occur; and if he will make a statement on the matter. [21577/22]

Bernard Durkan

Question:

174. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the alleged causes of inflation can be traced directly to their sources, thus avoiding unnecessary price spirals; and if he will make a statement on the matter. [21580/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 169 to 171, inclusive, and 174 together.

Inflation picked up sharply over the course of the last year and in March stood at 6.9 per cent. Almost every advanced country in the world is in the same position, with inflation rates of 8, 7 and 7.4 per cent recorded in the US, UK and euro area respectively in March.

The rise in wholesale energy prices is the key contributor and reflects the rapid rebound in global demand and, more recently, the war in Ukraine. Price spikes have been seen in a range of other commodities as well, including food, fertilisers and metals. Global supply chain disruptions, including the availability of inputs and transport bottlenecks, have also added to inflationary pressures. Domestically, the speed and strength of the economic recovery has led to an imbalance between demand and supply and put additional upward pressure on both wages and prices.

Looking ahead, energy prices increases will continue to be a key driver over the coming months. Inflation is now expected to peak at around 6¾ per cent in the second quarter and average 6¼ per cent for the year as a whole. Pass-through price effects are expected in other sectors such as food (via higher fuel/fertiliser costs) and consumer goods and services (due to higher energy inputs), and will add to core inflation, which excludes energy and unprocessed food, this year. Core inflation is expected to average 3.9 per cent for 2022 as a whole.

However, given the uncertain and evolving nature of the conflict, the margin of uncertainty around these projections is significant. For this reason, my Department also published a scenario analysis in the Stability Programme Update, in which wholesale oil and gas prices return to their early-March levels and remain elevated relative to baseline this year and next. In this scenario, inflation would be 2 percentage points higher this year and peak at around 9¼ per cent in the third quarter.

The Government is acutely aware of the impact of rising prices on households and businesses and has introduced a series of measures in recent months at a cost of over €2 billion to help address the rising cost of living. This included a reduction in the VAT rate to 9 per cent for electricity and gas to end-October, an additional once-off lump sum payment in respect of the fuel allowance, a reduction in the PSO levy, an extension of the reduction in excise duty to mid-October and a €200 electricity credit for all households. However, it must be stressed that resources are limited; the priority is to minimise the impact on those who are most affected; the Government can help, but cannot fully insulate all from the burden of higher energy prices.

Given the current dynamics at play, we must remain prudent in our approach – conscious that broad fiscal measures at this point in time could lead to further inflationary pressure which would be counterproductive in nature. My Department will continue to monitor the inflation situation closely and take appropriate actions when necessary. 

Question No. 170 answered with Question No. 169.

Question No. 171 answered with Question No. 169.

Economic Data

Questions (172, 178)

Bernard Durkan

Question:

172. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which Ireland’s economy continues to compete with other European economies inside and outside the eurozone; and if he will make a statement on the matter. [21578/22]

Bernard Durkan

Question:

178. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which Irish manufacturing and services costs remain competitive within the European Union; and if he will make a statement on the matter. [21585/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 172 and 178 together.

At the beginning of this year, the fading impact from the pandemic alongside the strong recovery in the labour market pointed to robust growth in Irish economy this year. However the onset of the war in Ukraine fundamentally altered the economic outlook, representing a large supply-side shock to the global economy.  While the war is expected to slow the economic recovery, it is importantly not expected to de-rail it.

The primary channel through which the conflict will impact on the Irish economy is via elevated energy and other commodity prices. Higher prices will undermine the profitability of business, with costs rising in both the Irish manufacturing and services sectors. However, higher inflation is not only affecting the competitiveness of businesses in Ireland, but is also impacting on the competitiveness of businesses in most advanced economies, with the euro area, the US, and the UK all recording multi-decade high inflation in March.

In the Stability Programme Update, published earlier this month, my Department projected inflation to peak at an average rate of 6¾ per cent in the second quarter, before easing slightly over the rest of the year. Inflation is expected to moderate next year but remain at an elevated level, although risks to inflation are tilted firmly to the upside.

As it stands, Ireland remains in a competitive position. The Irish modified current account, which strips out the distorting effects of globalisation, is in a very strong position and is expected to remain in surplus over the medium term. Irish exports have recorded a robust start to 2022, with a continued strong performance in the multinational sector and significant growth in the traditional sector. I am very aware of the importance of maintaining our competitive position on the international stage

Domestically, there is a real risk that a wage-price spiral emerges as a result of persistently-high inflation. This would damage cost competitiveness and hamper the economy’s ability to compete in the global market place. My Department will continue to monitor risks to Ireland’s competitiveness closely, and respond as needed to protect Ireland’s competitive advantage.

House Prices

Questions (173)

Bernard Durkan

Question:

173. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which efforts are in place to curtail the upward spiral of inflation affecting house prices; the extent of the measures anticipated to control this surge; and if he will make a statement on the matter. [21579/22]

Written answers

Minister for Finance

My Department continues to monitor all aspects of the property market, including the rate of property price inflation, on an ongoing basis. According to the most recent figures released by the Central Statistics Office, the National Residential Property Price Index increased by 15.3 per cent in the twelve months to February 2022.

Many of the factors explaining the current high inflationary environment are not within Ireland’s control, including the inflationary impact of Russia’s unprovoked invasion of Ukraine, the impact of a rapid rebound in global demand and global supply chain disruptions affecting the availability of key inputs. However, the underlying factor driving house price inflation in particular, is insufficient supply.

As a result, the Government’s primary response to mitigate residential price inflation has been to increase supply with recent data providing encouragement in that regard. In the twelve months to March 2022, 34,846 new homes were commenced, the highest since May 2008. Moreover, planning permission was granted for the construction of 42,991 new homes in 2021, the highest since 2008.

In addition to increasing the supply of homes in general, more work needs to be done to increase the supply of social and affordable homes. In Budget 2022, €4 billion was allocated towards housing, including capital funding of €2.58 billion, a large proportion of which will be used to deliver 9,200 new social homes. The vast bulk of this will be delivered through new-build.

Housing for All targets the delivery of 54,000 affordable homes for purchase or rent and over 90,000 social homes by 2030. Achieving these targets will make a real difference in improving affordability for our citizens.

All of these measures testify to the need to take a multi-faceted approach to increase the supply of new housing and I will continue to work closely with my Government colleagues to ensure these targets are delivered.

Question No. 174 answered with Question No. 169.

House Prices

Questions (175)

Bernard Durkan

Question:

175. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which investment funds here are contributing to the spiral of house prices; and if he will make a statement on the matter. [21581/22]

Written answers

Minister for Finance

According to data from the Central Statistics Office (CSO), real estate companies account for a relatively small proportion of housing transactions. In 2020, the latest year for which data is available, such firms purchased 2.8 per cent of all transacted units. While the number of transactions from such investors has likely increased since then, it is unlikely they capture enough share of the housing market to have a significant effect on overall national property price inflation.

Institutional funds typically purchase newly built urban apartment blocks via forward – commit arrangements. Under such arrangements the investor agrees to buy a block of apartments upon completion. The guaranteed sale de-risks the project, allowing the developer to secure finance and build the block. Without such arrangements the new apartments may never be built.

Forward-commit deals have helped lead to a significant increase in the number of new apartments being built over recent years. CSO statistics show that 5,107 new apartments were built in 2021, more than double the 2,258 apartments built in 2018.

The high property price inflation seen in recent months is primarily due to an undersupply of homes in the market. The Government’s primary response to mitigating residential price inflation is to increase supply. Recent data provides encouragement about the delivery of future housing completions. In the twelve months to March 2022, 34,846 new homes were commenced, the highest level since May 2008. Moreover, planning permissions was granted for the construction of 42,991 new homes in 2021, the highest since 2008.

The overall investment required to build an average 33,000 homes per year is an estimated €12 billion, which will require finance from the domestic banking sector, international investors and the State. Significant State investment has already been committed as part of Housing for All, with over €4 billion to be invested in housing per annum to 2030.

Delivering on our housing targets will require significant resources from both the public and private sectors and I will continue to work closely with my Government colleagues to ensure these targets are delivered.

House Prices

Questions (176)

Bernard Durkan

Question:

176. Deputy Bernard J. Durkan asked the Minister for Finance his views on whether investment funds in Ireland are making an opportunistic profit through the use of the construction sector given the fact that the main banks here are not competing; and if he will make a statement on the matter. [21582/22]

Written answers

Minister for Finance

Through the implementation of the Housing for All strategy, the Government plans to increase the supply of housing to an average of 33,000 per year over the next decade. This is an ambitious plan which will provide increased housing supply and affordability.

While the plan is backed by unprecedented State investment, the Government cannot deliver on this programme alone. The only way we can deliver housing at the substantial scale we need is by also attracting private capital to the market.

Through modelling undertaken by the Department of Finance, it is estimated that €12 billion of development funding per annum, comprising both debt and equity, will be required to develop the Housing for All target of an average of 33,000 homes per year. Of this €12 billion per annum, an estimated €10 billion will be required from private capital sources. While a portion of this will come from our domestic banks, the majority will be required from international sources.

Domestic banks set risk limits around the type and nature of lending activity, resulting in selective and prudent lending practices. It is not desirable that domestic banks provide senior debt at unsustainable levels and levels of debt should appropriately reflect the risk profile of development projects.

As a result, we will attract and welcome inward investment to our housing market, as we have successfully done with investment in other sectors of our economy. This private and patient capital coming from well-established investors such as pension funds is a normal facet of housing investment in many of our European neighbours and beyond.

A substantial increase in the supply of new homes is the only route to solving Ireland’s housing crisis. This will require significant private investment alongside our public investment and is necessary to meet the targets set out in the Housing for All strategy.

Cost of Living Issues

Questions (177)

Bernard Durkan

Question:

177. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he can continue to take measures to control the cost of living without contributing to inflation; and if he will make a statement on the matter. [21584/22]

Written answers

Minister for Finance

Inflation picked up sharply over the course of the last year and in March stood at 6.9 per cent. Almost every advanced country in the world is in the same position, with euro area inflation reaching a record 7.4 per cent in March. The rise in wholesale energy prices is the key contributor and reflects the rapid rebound in global demand and, more recently, the war in Ukraine.

Looking ahead, energy prices increases will continue to feed into higher inflation over the coming months. The war has also led to a spike in the price of other commodities while further impairing global supply chains. Pass-through price effects are therefore expected in other sectors, such as food via higher fertiliser and fuel costs for instance, as well as other goods. Inflation is now expected to peak at around 6¾ per cent in the second quarter and average 6¼ per cent for the year as a whole. While inflation will remain elevated throughout 2022, inflation is expected to ease next year and average 3 per cent in 2023.

The Government is very conscious of the impact of rising prices on households and businesses and has accordingly introduced a series of measures in recent months at a cost of over €2 billion. Firstly, Budget 2022 contained a combined income tax and social welfare package amounting to almost €1.1 billion. A suite of measures was then introduced in mid-February, amounting to around €500 million, including an energy credit of €200 to every household in the country and a once-off lump sum payment of the fuel allowance. In March, Government announced reductions in excise duty of 20 cent per litre for petrol and 15 cent per litre for diesel.

Earlier this month we announced further measures amounting to almost €200 million. These measures included a temporary reduction in the VAT rate for electricity and gas to 9 per cent, an additional once-off lump sum payment of the fuel allowance and an extension of the reduction in excise duty to mid-October.

The Government is acutely aware of the cost pressures households and businesses face. However, resources are limited and the priority is to minimise the impact on those who are most affected; the Government can help, but cannot fully insulate all from the burden of higher energy prices.

Given the current dynamics at play, we must remain prudent in our approach – conscious that broad fiscal measures at this point in time could lead to further inflationary pressure which would be counterproductive in nature. My Department will continue to monitor the inflation situation closely and take appropriate actions when necessary.

Question No. 178 answered with Question No. 172.

Tax Code

Questions (179)

Bernard Durkan

Question:

179. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which the OECD agreement on corporation profits tax remains; if attempts in some European countries to derail the proposal are ongoing; and if he will make a statement on the matter. [21586/22]

Written answers

Minister for Finance

On 8 October 2021, Ireland, along with 136 jurisdictions, signed up to a two-pillar International agreement at the OECD/G20 Inclusive Framework on BEPS to address the tax challenges arising from the digitalisation of the economy.

Pillar One will see a reallocation of 25% of residual profits to the jurisdiction of the consumer. The scope is confined to multinational groups with turnover in excess of €20 billion annually. Residual profit is profit greater than 10% of turnover.  Pillar Two provides that the minimum effective rate is 15% for in-scope businesses (MNEs over €750m revenue).

Signatories to the agreement are working intensively at the OECD working parties to reach agreement on the technical detail required to ensure these complex provisions are transposed robustly and in co-ordination by all signatories to the agreement.

In respect to Pillar One, the OECD have divided the work into 14 building blocks which are under development with drafts released for public consultation periodically with a number of building block already gone to public consultation. 

For Pillar Two, Model Rules were published by the OECD in December 2021 and the European Commission subsequently published a legislative proposal, the Minimum Tax Directive, to transpose Pillar Two within the European Union. Ireland has been actively involved in the technical negotiations on the Directive since the start of 2022 and we support the current draft text which is broadly faithful to the OECD agreement. It is hoped that final agreement on the Directive can be reached soon between all EU Member States and this will allow its coordinated implementation in national laws across the EU to proceed.

Tax Code

Questions (180)

Mairéad Farrell

Question:

180. Deputy Mairéad Farrell asked the Minister for Finance his plans to examine the tax treatment with respect to capital acquisition tax for couples who are long-term cohabitants; and if he will make a statement on the matter. [21631/22]

Written answers

Minister for Finance

As the Deputy is aware, for the purposes of capital acquisitions tax (“CAT”), the relationship between the person who provides a gift or inheritance (“the disponer”) and the person who receives it (“the beneficiary”) determines the tax-free threshold (“Group Threshold”) below which CAT does not arise.

Any prior gift or inheritance received by a person since 5 December 1991 from within the same Group Threshold is aggregated for the purposes of determining whether any CAT is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant Group Threshold, CAT at a rate of 33% applies on the excess.  In the case of long-term cohabitants who are not related, the relevant Group Threshold is the Group C threshold, which is currently €16,250.  In addition to this, a CAT exemption may be available in relation to certain gifts and inheritances between long-term cohabitants. 

Firstly, where a cohabitant inherits the family home from his or her deceased partner, he or she may be in a position to avail of the dwelling house exemption.  To qualify for the exemption, the inherited property must have been the deceased cohabitant’s principal private residence at the date of his or her death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in a nursing home. In addition, the inheriting cohabitant must not have a beneficial interest in another residential property. The inheriting cohabitant must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date.  Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf.

In addition to the dwelling house exemption, gifts and inheritances taken by a qualified cohabitant in accordance with a court order made under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 are exempt from CAT. Part 15 of that Act provides for a redress scheme whereby court orders can be obtained in certain circumstances in relation to the transfer of property. A “qualified cohabitant” is a person who has been in a committed and loving relationship with another person for a minimum period of 5 years (or 2 years where they are parents of one or more dependent children), whose relationship has ended due to death or separation and neither of whom was married to and living with another person in 4 of the 5 years immediately prior to the end of the relationship.

In relation to the Deputy’s reference to couples who are long-term cohabitants, it is important to note that differences in the tax treatment of the different categories of couples arise from the objective of dealing with different circumstances. Under the law, couples who have obtained legal recognition of their relationship status through marriage or civil partnership are not in an analogous situation to other cohabiting couples, which is why they are not accorded similar tax treatment to couples who have a civil status that is recognised in law.  Any change in the tax treatment of cohabiting couples can only be addressed in the broader context of future social and legal policy development in relation to such couples.

Further information on the taxation of cohabiting couples can be found on the Revenue website, available at www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/cohabiting-couples/index.aspx.