Dáil Éireann Debate, Thursday - 1 June 2023
168. Deputy Pearse Doherty asked the Minister for Finance the revenue raised by introducing a higher 40% rate of capital gains tax, applied to the portion of gains where an individual's ordinary income and gains exceeds €500,000, taking into account the continued operation of the revised entrepreneur relief, in first- and full-year terms. [27015/23]
View answerI am advised by Revenue that the estimated full-year revenue generated from a 40% Capital Gains Tax (CGT) rate being applied to the taxable gains of individuals with aggregate income and gains in excess of €500,000 is of the order of €86 million. The first-year yield would depend on the timing of the introduction of the change.
This estimate is based on 2020 data, the latest year for which fully analysed data are available, with the higher proposed rate being applied to the amount of the gains above the combined threshold only and assumes the continuation of entrepreneur relief. Additionally, it assumes no change in behaviour by individuals resulting from the increase in the tax rate.
