Dáil Éireann Debate, Tuesday - 29 November 2005
221 Ms O. Mitchell asked the Minister for Finance if there have been changes to the tax code which would exempt long-term cohabiting couples from capital gains tax on the jointly owned family home in the event of the break up of the relationship or if such changes are being considered. [36799/05]
Amharc ar fhreagraAn exemption from capital gains tax on the disposal of, or an interest in, an individual's principal private residence has been in place since the introduction of capital gains tax in 1975. The exemption applies to all individuals, including those who have been cohabiting.
In general a gain on the disposal by an individual of, or an interest in, his or her principal private residence is exempt from capital gains tax if the property has been occupied as his or her only or main residence throughout his or her period of ownership. The last 12 months of ownership is, in any event, regarded as a period of occupation. Where the dwelling house was not so occupied throughout the period of ownership, a proportion of the gain on the disposal is exempt. Where a principal private residence is jointly owned each owner must separately satisfy the conditions for the relief.
Where a cohabiting couple dispose of the family home but do not qualify for the full principal private residence relief as already outlined, they would be liable to capital gains tax on the part of the gain which is not exempt, the same as any other individual.
222 Mr. N. O’Keeffe asked the Minister for Finance if arrangements will be made to transfer a person (details supplied) from joint tax assessment to single tax assessment. [36824/05]
Amharc ar fhreagraI have been informed by the Revenue Commissioners that there is no such credit as a separated person's tax credit of €3,000 as suggested in the information supplied by the Deputy.
As the taxpayer is the assessable spouse, she is entitled to the basic personal tax credit for a married person for the year of separation, €3,160 in 2005, and is assessable on her spouse's income until the date of separation. The basic personal tax credit for a single person, €1,580 in 2005, is available for subsequent years. If she has a child, she may be entitled to a one-parent family tax credit, €1,580 in 2005. This is not allowable in a year in which the basic personal tax credit for a married person is allowed.
The person concerned should contact her local tax office giving details of her situation so that her full entitlements can be established. She may write or call to the Office of the Revenue Commissioners, south-west region, Government Offices, Sullivan's Quay, Cork, or telephone Revenue at Lo-call 1890 22 24 25.
223 Mr. Durkan asked the Minister for Finance if mortgage interest relief is due in the case of a person (details supplied) in County Kildare. [36846/05]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that the person referred to by the Deputy is receiving tax relief at source, TRS, on mortgage interest incurred.
If the person wishes to clarify any aspect of the relief being received, he may contact the Collector General's office in Revenue on 1890 46 36 26.
