Dáil Éireann Debate, Thursday - 14 June 2012
34 Deputy Gerald Nash asked the Minister for Finance the likely yield from additional capital acquisitions tax, if the following changes were made, drop the Category A threshold to €200,000, to reduce the level of business and agricultural relief to 75%, and to cap the level of business and agricultural relief at €2,500,000. [28846/12]
Amharc ar fhreagraThe current Group A tax-free threshold (for gifts/inheritances from parents to children) is €250,000. I am advised by the Revenue Commissioners that the full year yield from reducing the Group A threshold to €200,000 is estimated to be of the order of €15 million. The Group A threshold has already been reduced by 59% from its peak level of €542,544 in early 2009. Revenue does not receive information on gifts and inheritances which currently do not have to be declared so it is not possible to estimate the potential yield if such benefits were brought into the tax net by the proposed reduction. The estimated full year yield from reducing Business Relief and Agricultural Relief from 90% to 75% would be in the region of €14 million and €35 million respectively.
It is not possible to estimate the yield from capping the level of business and agricultural relief at €2,500,000.
It should be noted that these estimates are based upon an assumption that there would be no behavioural impact from such changes, which could lead to a less than expected result from a change to the tax base. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets which are currently occurring in the economy.
