Dáil Éireann Debate, Wednesday - 13 July 2022
150. Deputy Ged Nash asked the Minister for Finance the estimated yield from reducing the scale of agriculture and business capital gains tax relief respectively from 90% to 50% of the taxable value of the relevant assets and capping the relief at €3 million. [38655/22]
View answer153. Deputy Ged Nash asked the Minister for Finance the yield to the Exchequer from capital gains tax for the previous three years; the estimated yield to the Exchequer from reducing the CAT class A threshold to €250,000, the class B threshold to €25,000 and reducing the class C threshold to €13,000 at a rate of 33%, 36% and 40% respective in tabular form; and if he will make a statement on the matter. [38658/22]
View answer178. Deputy Ged Nash asked the Minister for Finance the yield gained from an increase in the initial once-off 6% charge to 20% with respect to the on discretionary trust tax; and if he will make a statement on the matter. [38691/22]
View answerI propose to take Questions Nos. 150, 153 and 178 together.
It is assumed the Deputy is referring to Capital Acquisitions Tax (CAT) rather than Capital Gains Tax (CGT) as the reliefs and tax mentioned relate to CAT.
I am advised that the annual CAT receipts are published on the Revenue website at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-taxhead.aspx
I am further advised that the Revenue Ready Reckoner, can be used to estimate the yield from the proposed changes to CAT reliefs, thresholds and rates, by extrapolating from the information on pages 15 to 17. The Ready Reckoner is available at:
https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
Revenue advise that a breakdown of CAT receipts for recent years, including the yield from discretionary trust tax, is published at: https://www.revenue.ie/en/corporate/documents/statistics/receipts/cat-receipts.pdf.
Regarding an increase in the rate of discretionary trust tax from 6% to 20% would likley give rise to significant behavioural changes that are not possible to model. Therefore, there is no basis on which to provide an estimate of the yield from such a change.
Finally I am advised by Revenue that the yield from capping business and agricultural relief at €3 million and introducing a limit of 50% for both of these reliefs is tentatively estimated at €58 million for Business Relief and €64 million for Agricultural Relief.
