Michael McGrath
Ceist:313. Deputy Michael McGrath asked the Minister for Finance the cost of capital gains tax entrepreneur relief in 2014; the projected cost in 2015; and if he will make a statement on the matter. [21742/15]
Amharc ar fhreagraTuesday, 9 June 2015
Ceisteanna (313)
Freagraí scríofa
CGT entrepreneurial relief was introduced to encourage entrepreneurs (in particular "serial" entrepreneurs) to invest and reinvest in assets used in new productive trading activities. The measure applies where an individual, who has paid capital gains tax on the disposal of assets, makes investments in a new business in the period 1 January 2014 to 31 December 2018 and subsequently disposes of this investment no earlier than three years after the date of investment. The CGT payable on the disposal of the new chargeable business assets will be reduced by the lower of (i) the CGT paid by the individual on a previous disposal of assets in the period from 1 January 2010 and (ii) 50% of the CGT due on the disposal of the new investment. This measure was included in Budget 2014 and Finance (No 2) Act 2013, subject to receipt of EU State Aid approval, and was subsequently put into effect in Finance Act 2014 with certain amendments to comply with EU State Aid rules and to improve the effectiveness of the relief.
Due to the conditions attaching to the relief, as outlined above, no Exchequer cost arises in either 2014 or 2015.
Questions Nos. 314 to 317, inclusive, answered with Question No. 281.