Written Answers Nos. 41-60
41. D'fhiafraigh Deputy Aengus Ó Snodaigh den Aire Airgeadais an bhfuil aon anailís déanta ag a Roinn ar an tionchar a bheadh ag eisceacht ón dleacht stampála i gcás tithe saoire sa Ghaeltacht atá á ndíol le daoine agus le teaghlaigh le Gaeilge mar bhealach chun dul i ngleic leis an ngéarchéim thithíochta sa Ghaeltacht agus tithe breise a fháil ar an margadh, agus an bhfuil sé i gceist aige eisceacht dá shórt a chur i bhfeidhm. [16050/25]
View answerBaineann cúrsaí maidir le forbairt agus cur chun cinn na Gaeilge le mo chomhghleacaithe an tAire Forbartha Pobail agus Tuaithe agus Gaeltachta Dara Calleary TD agus Jerry Buttimer TD (an tAire Stáit ag an Roinn Forbartha Tuaithe agus Pobail le freagracht ar leith as Forbairt Pobail, Carthanas, Gaeltachtaí agus Oileán).
Is é ceann de phríomhróil roinn an Aire Calleary ná chun an Ghaeilge a thacú agus a láidriú mar an phríomhtheanga phobail sna réigiúin Ghaeltachta.
Maoiníonn an roinn sin Údarás na Gaeltachta agus oibríonn sí go dlúth leis agus é ina ghníomhaireacht forbartha réigiúnach don Ghaeltacht.
Tá freagracht uileghabhálach ag an roinn sin an Straitéis 20 Bliain don Ghaeilge 2010-2030 a chur i bhfeidhm chomh maith. Cuirtear cur chuige iomlánaíoch comhtháite chun cinn sa Stráitéis sin atá comhsheasmhach le dea-chleachtas idirnáisiúnta. Tá cur i bhfeidhm an phróisis pleanála teanga ar cheann de na gnéithe an-tábhachtach sa Straitéis seo, rud a dhéantar i gcomhar le hÚdarás na Gaeltachta agus Foras na Gaeilge.
Bheadh sé an-deacair (nó fiú dodhéanta) beart ar nós an chinn a mhol an Teachta a reáchtáil agus póilíneacht a dhéanamh air.
Ina dteannta sin, baineadh an beart molta seo le díol áiteanna cónaithe tánaisteacha ina dtithe saoire amháin. Ach ní thabharfaí bunspreagadh i mbeart mar seo d’úinéirí áiteanna cónaithe tánaisteacha i gceantair Ghaeltachta iad a chur ar an margadh, toisc go bhfuil an Dleacht Stampála le híoc ag an duine nó ag na daoine atá ag ceannach réadmhaoine, seachas aige nó acu á dhíol.
Faoi dheireadh, is fiú dom a lua go bhfuil eisceacht Dleacht Stampála cheana féin ag Údarás na Gaeltachta agus Comhlachtaí Ceadaithe Tithíochta araon faoi alt 25 den Acht um Údarás na Gaeltachta 1979 agus faoi alt 93A den Acht Comhdhlúite Dleachtanna Stampa faoi seach.
Níl rún agam beart an Teachta a thabhairt faoi.
42. Deputy Colm Burke asked the Minister for Finance if he will consider increasing the age related tax exemption to income tax from €18,000 per annum where an individual is aged 65 years or over, and €36,000 per annum for married couples and civil partners, jointly assessed to tax, where either individual is aged 65 or over, in view of the fact that there have been increases to the State pension in the past number of years and this exemption has not been increased since 2011; and if he will make a statement on the matter. [16043/25]
View answerAs the Deputy is aware the current thresholds for the income tax age exemption are €18,000 per annum where an individual is aged 65 years or over, and €36,000 per annum for married couples and civil partners, jointly assessed to tax, where either individual is aged 65 or over. The relevant income thresholds may be increased further if the individual has a qualifying child. Additionally, marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount.
The current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. For example, the age tax credit or the age exemption limits and marginal relief are available to persons aged 65 or over. In addition, reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
The Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to income tax and USC as it narrows the base and breaches the concept of horizontal equity. Further details are set out in the Report of the Commission, at the following link - www.gov.ie/en/publication/7fbeb-report-of-the-commission/
As such, I have no plans to increase the age exemption limits.
However, persons aged over 65 can avail of the age exemption or the normal tax system of credits and bands.
With the substantial increases to tax credits in recent Budgets, the effective entry point to income tax has increased for all taxpayers, including those aged 65 or older. For 2025, the effective entry point to income tax for an individual in receipt of the single person credit, employee/earned income credit and the age credit is €21,225 per annum.
Therefore, depending on their personal circumstances, it may be more beneficial for persons aged over 65 to be taxed under the normal tax system of credits and bands.
I would encourage all taxpayers to ensure that they are availing of the most beneficial tax treatment.
Finally, the Deputy may wish to note that Revenue is hosting a series of over 65s "All you need to know about tax" events in the comings weeks and further details can be located on Revenue's website - www.revenue.ie/en/news/articles/revenue-over65s-event.aspx#:~:text=Home%20News-,Revenue%20is%20hosting%20an%20over%2065s%20%22All%20you%20need%20to,register%20in%20advance%20of%20attending
43. Deputy Pearse Doherty asked the Minister for Finance to outline any engagement he was had with the banks in relation to the level of profits announced; and if he will make a statement on the matter. [16307/25]
View answerOfficials in my Department have regular engagement with the board and management of the banks in which the State has a shareholding. Meetings with the management of the banks take place monthly, and the topics discussed at these meetings include but are not limited to profitability levels and the supporting commercial activities undertaken by the bank. As the Deputy is aware, the bank’s day to day engagement with the State is governed by Relationship Frameworks document specified by the Minister for Finance (and which is available on the Department’s website: www.gov.ie/en/publication/066a28-banks/
44. Deputy Pádraig O'Sullivan asked the Minister for Finance if he will consider the inheritance-tax liability of citizens without children and, in doing so, allow more favourable terms when their estate provides for nieces and nephews, brothers and sisters; and if he will make a statement on the matter. [15981/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.For clarity it is useful to note that the definition for children for CAT purposes includes any stepchildren, adopted children or certain foster children. All can avail of the Group A threshold in respect of gifts and inheritances received from that disponer.In addition, nieces or nephews of that disponer may qualify for favourite niece or favourite nephew relief in respect of gifts or inheritances of business assets. The relief allows a niece or nephew who qualifies for the relief to avail of the Group A threshold. Qualifying nieces or nephews are those who have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer. For the nephew or niece to be deemed to be working substantially on a full-time basis in the business he or she must work:> more than 24 hours per week at the place where the business, trade or profession is carried on; or more than 15 hours per week at the place where the business, trade or profession is carried on exclusively by the disponer, any spouse or civil partner of the disponer and the nephew or niece.Furthermore, it is worth noting that there is an exemption from CAT where dwelling houses are bequeathed by individuals who have lived there for a specified period of time before the inheritance, will continue to live there for a specified period of time after the inheritance, and who have no beneficial interest in any other residential property at the date of the inheritance. The policy rationale behind the dwelling house exemption is to protect the family home by ensuring that a beneficiary who has been living with the disponer, and will continue to reside there after the inheritance, does not have to sell that family home to pay a CAT liability and thus will continue to have somewhere to live. It is not necessary for the beneficiary of an inheritance under the dwelling house exemption to be a child or relative of the disponer. My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. These papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. The papers are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.
The deputy should be aware that there would be a significant cost in making substantial changes to the CAT thresholds. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
45. Deputy Cathal Crowe asked the Minister for Finance if he will provide an overview of the work underway in his Department to fulfil the Programme for Government pledge to reduce the VAT rate applicable to food and beverage hospitality; and if he will make a statement on the matter. [15777/25]
View answer59. Deputy Michael Cahill asked the Minister for Finance to support the hospitality sector and hairdressers by reintroducing the 9% VAT rate as a matter of priority; when the 9% VAT rate will be reintroduced; and if he will make a statement on the matter. [9148/25]
View answerI propose to take Questions Nos. 45 and 59 together.
In recognition of the needs of SMEs in the hospitality sector, the Programme for Government does commit to bring forward measures to support SMEs, in particular in the retail and hospitality sectors. It acknowledges the increased cost pressures on these sectors and states that this will entail changes to VAT, PRSI and other measures.
As the Deputies will be aware, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework.
The Programme for Government makes it clear that these measures will be implemented as part of the normal budget process. This will include consideration in the relevant Tax Strategy Group paper in advance of the budget. The timing of any VAT change as well as its scope will be considered as part of that process.
46. Deputy Brian Stanley asked the Minister for Finance the proportion of finance received from the sale of bank shares by the State that will be used for critical infrastructure such as water services and other essential services; and if he will make a statement on the matter. [16082/25]
View answerAs part of Budget 2025 in October last it was announced that the disposal of part of the State’s shareholding in AIB had presented the Government with an opportunity to allocate €3 billion of additional funding towards capital spending on housing, water and the electricity grid over the coming years.
€1 billion has been provided to Uisce Éireann for capital investment works to be carried out across the country over the period 2025-2028. To support an acceleration in the supply of new homes a further allocation of €1.25 billion was made available to the Land Development Agency (LDA). €750 million was allocated to facilitate an initial, direct equity injection to support capital spending on the further development of the electricity grid infrastructure.
As regards the use of the proceeds, the current Programme for Government includes an early review of the National Development Plan to be completed by July 2025. The review of the National Development Plan will encompass all public capital investment, utilising all State funds, including the Apple Escrow monies.
This is expected to support increased capital investment in housing, energy, water and transport. The NDP review is a matter for my colleague Mr. Jack Chambers TD Minister for Public Expenditure, NDP Delivery and Reform.
47. Deputy Barry Ward asked the Minister for Finance his views on the merits of amending existing inheritance tax parameters; if the existing relationship category thresholds can be reviewed; and if he will make a statement on the matter. [16250/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
Gifts and inheritances between spouses and civil partners are exempt from CAT. There are also a number of exemptions and reliefs from CAT that may apply depending on the circumstances of the case, including reliefs which apply to relationships within the Group A threshold.
One such exemption is the CAT dwelling house exemption. Where a person takes an inheritance of a dwelling house, that person may be able to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the disponer’s principal private residence at the date of 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. The beneficiary 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. In addition, the beneficiary must not have a beneficial interest in any other residential property. 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.
As the Deputy is aware, there is provision in CAT legislation for a niece or nephew of the disponer to avail of the Group A threshold where the gift or inheritance consists of business assets and certain conditions are met. The niece or nephew must have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.
My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. These papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. These papers are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.
The Deputy should note that there would be a significant cost in making any further substantial changes to CAT.? The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
48. Deputy Naoise Ó Cearúil asked the Minister for Finance if he will be reviewing the category C thresholds in relation to capital acquisitions tax; and if he will make a statement on the matter. [16281/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. The papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. These papers are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.
The Deputy should be aware that there would be a significant cost in making any further substantial changes to CAT including the category C thresholds.? In this regard, the options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
49. Deputy Joanna Byrne asked the Minister for Finance if he will consider increasing the betting tax levy by 1%, and noting the disparity in funding for sports, commit to directing a portion of these funds into Irish football with a view to improving facilities, upgrading training grounds and modernise stadiums; and if he will make a statement on the matter. [10152/25]
View answerBetting Duty is chargeable on all bets placed by a person with a licensed bookmaker at a bookmaker’s registered premises, irrespective of the means by which a bet is placed. Licensed Remote Betting Intermediaries are liable for Betting Intermediary Duty, on commission charged by them to persons in the State.
The rate of duty depends on the type of betting activity and how the bet is placed. The rate of betting duty for bets place with a licensed bookmaker within the State either over the counter or via remote means is 2%. The rate of Betting Intermediary Duty on commission is 25%.
Betting duty is reviewed annually as part of the annual Budget process. Options in regard to rates are presented to the Tax Strategy Group (TSG) in the TSG General Excise paper which is published online on the website of the Department of Finance. Any decision in relation to rates will be taken in the context of Budget 2026.
With regard to the use of funds arising from Betting Duty, the Deputy should note that Revenue raised from Betting Duty accrues to the Exchequer and there is no hypothecation/ring-fencing of Betting Duty receipts to any sport or sporting body. Such funding matters are for the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and the Department of Public Expenditure, NDP Delivery and Reform to consider as part of the annual estimates process.
50. Deputy Erin McGreehan asked the Minister for Finance if he plans any changes to the disabled drivers and disabled passengers (tax concessions) scheme. [16061/25]
View answerThe Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
However, this is very much a matter for Government as whilst my Department has oversight of the DDS, I do not have responsibility for disability policy.
As the Deputy is aware the National Disability & Inclusion Strategy or NDIS Transport Working Group recommended that the DDS be replaced with a modern, fit-for-purpose vehicular adaptation scheme. This is in line with the general view that we need to move away from a medical criteria-based approach to a needs-based approach.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress NDIS proposals for needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, have generated a report that has been submitted to the Department of the Taoiseach, for its consideration.
In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
52. Deputy John Connolly asked the Minister for Finance the progress his Department is making in examining the tax treatment of production costs for theatre productions, as per the commitment in the Programme for Government; and if he will make a statement on the matter. [16245/25]
View answerThe Government, as indicated in the Programme for Government document launched in January 2025, has committed to examine the tax treatment of production costs for theatre productions.
The Deputy will be aware that the Programme for Government is a five-year plan and as such, officials of my Department have not commenced work on the commitment at this early stage.
Once officials commence work in this space, engagement with the sector will take place to understand how it operates, the challenges it is facing, and what policy levers may be effective and efficient in supporting the sector. The design and policy objectives of comparable supports in other jurisdictions will also be examined, and in due course officials will make recommendations for my consideration.
It is currently not expected that this process will conclude ahead of this year’s Finance Bill. However, the Deputy may be aware that there is a broad range of tax-based supports currently available for the creative sector in Ireland, including two new measures introduced as part of Budget 2025. Section 481 was amended to provide for an uplift of 8% to the existing rate of 32% for small to medium sized feature film productions with a maximum qualifying expenditure of €20 million (the Scéal Uplift), and a new credit has also been introduced for Unscripted Productions, which provides for a 20% credit on eligible expenditure of up to €15 million per production.
Both measures were introduced subject to commencement orders, pending receipt of State aid approval from the European Commission. Approval has recently been received in respect of the Scéal Uplift and steps are now being taken to finalise regulations and commence the relief. Officials continue to work closely with the Commission with a view to obtaining approval for the Unscripted Production measure.
53. Deputy Naoise Ó Muirí asked the Minister for Finance if he is concerned by the contraction of the domestic economy as shown by the quarterly national accounts for the final quarter of 2024; and if he will make a statement on the matter. [15669/25]
View answerModified Domestic Demand contracted in the fourth quarter of 2024 driven largely by a fall in modified investment. However, given the volatile nature of modified investment, the quarterly estimates alone are not indicative of underlying trends in the domestic economy. For the year as a whole, the domestic economy grew at a solid pace last year, with Modified Domestic Demand increasing by 2.7 per cent. The growth in the domestic economy is consistent with the strength of our labour market – with a record 2.8 million people in employment at the end of last year.
The positive momentum from last year has carried forward into this year, with the unemployment rate remaining low at around 4 per cent. Inflation also eased significantly throughout last year and stood at 1.4 per cent in February, one of the lowest rates of inflation amongst euro area countries.
Despite the relatively strong position of the domestic economy at the start of this year, the outlook has become increasingly uncertain in recent months with risks now heavily tilted to the downside. As a major beneficiary of global economic integration, the Irish economy is exposed to any potential reversal of this trend.
Our policy response to these challenges will focus on controlling ‘the controllables’ – making best use of the forces that we can influence. In particular, we will continue to invest in the necessary infrastructure in key strategic areas, such as energy, water, housing and transport, to ensure the Irish economy remains competitive. We must also continue to invest in our people, ensuring they have the skills and knowledge needed to meet the demands of the modern workplace.
The Government is also building up our fiscal buffers through transfers to the Future Ireland Fund and the Infrastructure Climate and Nature Fund . These funds will help ensure that we have the fiscal resources at our disposable to meet future expenditure needs.
I am confident that this approach will mean we are in the strongest possible position to meet future challenges in an increasingly uncertain world.
54. Deputy Pa Daly asked the Minister for Finance for an update on the fossil fuel divestment from the Ireland Strategic Investment Fund; and if he will make a statement on the matter. [16100/25]
View answerThe Fossil Fuel Divestment Act 2018 (the “Act”) has been in place since December 2018. The Act prohibits the NTMA (as controller and manager of ISIF), inter alia, from directly investing in any undertaking that generates 20% or more of its turnover from the exploration for or extraction or refinement of a fossil fuel (coal, oil, natural gas, peat or any derivative thereof intended for use in the production of energy by combustion).
Ireland was one of the first countries to divest public money from fossil fuel investments and ISIF remains one of a select few globally to implement a fossil fuel divestment strategy. ISIF has developed a list of 254 fossil fuel companies in which it will not invest, as determined by criteria within the Act.
This list is updated on a semi-annual basis in line with methodology which is aligned to the Act and is available on ISIF’s website.
55. Deputy Peter 'Chap' Cleere asked the Minister for Finance if he will report on his Department's consideration of measures to encourage gym membership and active participation in sport and exercise; and if he will make a statement on the matter. [15983/25]
View answerAs the Deputy will be aware, the Programme for Government, Securing Ireland’s Future, includes a commitment to “Consider measures, in conjunction with the Department of Finance, to encourage gym membership and active participation in sport and exercise.”
The Programme for Government also acknowledges that “sport holds a special place in Irish life and society promoting health and wellbeing, encouraging community participation and instilling a sense of pride in our people”.
This can be achieved through a variety of means including increased participation, education, increased funding, supporting high performance and governance.
In relation to the commitment to consider measures to encourage gym membership and active participation in sport and exercise, officials in the Department of Finance will consider the matter over the coming months with the expectation that an update of the examination will be provided as part of the annual Tax Strategy Group process during the summer.
In line with best practice and as with all proposals for the introduction of new tax measures or the amendment of existing tax reliefs, the proposal to encourage gym membership and active participation in sport and exercise through the tax system must be assessed in accordance with the Department of Finance’s Tax Expenditure Guidelines. These make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
Any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances.
I would also like to take this opportunity to note that the tax code already provides for a number of fitness based measures more generally. For example, the Cycle to Work Scheme provides that bicycles and associated safety equipment provided by employers to employees will be treated as a tax exempt benefit-in-kind subject to certain conditions being met. One of the benefits envisaged from the scheme was that more people cycling to and from work would improve health and fitness levels.
In addition, the Accelerated Capital Allowances scheme for Childcare Facilities and Fitness Centres encourages employers to develop childcare facilities and fitness centres onsite for their employees. The scheme provides accelerated allowances for qualifying buildings or structures over a seven-year period and accelerated allowances for related equipment at 100 per cent in year one.
57. Deputy Mattie McGrath asked the Minister for Finance the steps he is taking to review the discriminatory aspects of the current inheritance tax legislation particularly with regard to childless adults; and if he will make a statement on the matter. [15088/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
It is worth noting that there is an exemption from CAT where dwelling houses are bequeathed to individuals who:
> have lived there for a specified period of time before the inheritance, > will continue to live there for a specified period of time after the inheritance, and > who have no beneficial interest in any other residential property at the date of the inheritance.
The policy rationale behind the dwelling house exemption is to protect the family home by ensuring that a beneficiary who has been living with the disponer, and will continue to reside there after the inheritance, does not have to sell that family home to pay a CAT liability and thus will continue to have somewhere to live. It is not necessary for the beneficiary of an inheritance under the dwelling house exemption to be a child or relative of the disponer.
There is also provision in CAT legislation for a niece or nephew of the disponer to avail of the Group A threshold where the gift or inheritance consists of business assets and certain conditions are met. The niece or nephew must have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.
My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. These papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. The papers are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.
The Deputy should be aware that there would be a significant cost in making substantial changes to the CAT thresholds. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
58. Deputy Pearse Doherty asked the Minister for Finance to outline the potential economic impact of reciprocal EU counter tariffs; and if he will make a statement on the matter. [16305/25]
View answer70. Deputy Pearse Doherty asked the Minister for Finance to outline economic growth projections set out under each tariff scenario in the joint paper by his Department and the ESRI; and if he will make a statement on the matter. [16306/25]
View answerI propose to take Questions Nos. 58 and 70 together.
To better understand the potential impact of tariffs on the Irish economy, my Department and the ESRI recently published an analytical paper where several tariff scenarios were modelled. Each of the scenarios detailed below is based on the assumption that any tariffs imposed are maintained permanently.
In a scenario where the US unilaterally imposes 25 per cent tariffs on imports from the EU, Modified Domestic Demand (MDD) in Ireland is expected to fall by approximately 1¼ per cent relative to a no-tariff baseline over the medium term. If the EU responds with reciprocal tariffs, then the impact is expected to be 1¾ per cent. In other words, the EU response lowers MDD by around an additional ½ per cent.
The impact of tariffs on GDP is more significant, falling by 2¾ per cent in the scenario with US unilateral tariffs, and 3¾ per cent in the scenario with reciprocal tariffs. This reflects the greater sensitivity of GDP to fluctuations in the external environment.
Similarly, if the US were to impose tariffs of 10 per cent on all imports from the rest of the world, MDD would be expected to fall by approximately 1¼ per cent over the medium term, compared to a no-tariff baseline. The introduction of reciprocal tariffs by the rest of the world would mean that MDD falls by 1¾ per cent.
Once again, the impact of tariffs on GDP is more significant. Irish GDP falls by 2½ per cent in the case of unilateral tariffs, while the introduction of equivalent tariffs by the rest of the world leads to a decline in GDP of 3¼ per cent relative to baseline over the medium-term.
