As the Deputy is aware, the Small Gift Exemption is an annual CAT relief available to all recipients of gifts. This means that each parent can give a gift to the value of €3,000 to a child (or anyone else) each calendar year without any CAT arising. Two parents can make gifts to a child to the value of €6,000 in any year free of CAT. Indeed, two parents could, if they wished, gift €12,000 in total each year to each son or daughter and their respective partner (e.g. fiancée, fiancé, daughter-in-law, son-in-law) free of CAT.
I am advised by Revenue that the estimated cost of increasing the small gift exemption from €3,000 to €5,000 is in the region of €1.2 million. This estimate is based on Capital Acquisitions Tax returns filed in 2022 and does not include the impact of any behavioural changes that may occur as a result of this measure.
Any changes to the Small Gift Exemption must be considered in the context of competing demands. I believe the current relief available to be fair, and have no plans to increase the Small Gift Exemption at this time.