Michael Healy-Rae
Ceist:129. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding the capital gains tax; and if he will make a statement on the matter. [39806/19]
Amharc ar fhreagraTuesday, 1 October 2019
Ceisteanna (129, 141, 152)
Robert Troy
Ceist:141. Deputy Robert Troy asked the Minister for Finance the estimated first and full-year cost of a proposal by an organisation (details supplied). [39653/19]
Amharc ar fhreagra
Martin Heydon
Ceist:152. Deputy Martin Heydon asked the Minister for Finance if an analysis has been carried out regarding the impact of the differential between entrepreneurial relief here and the UK; the estimated cost to bring Ireland in line with the UK level; and if he will make a statement on the matter. [39958/19]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 129, 141 and 152 together.
I assume the Deputies' questions refer to the revised Entrepreneur Relief provided for in Section 597AA of the Taxes Consolidation Act 1997.
In general, consideration of any changes to the tax system in advance of Budget 2020 are undertaken within the annual Budgetary and Finance Bill process. The Deputies will therefore appreciate that I cannot therefore comment on any possible changes at this time.
Regarding Question No. 141, I am advised by Revenue that information is not available in tax returns in respect of holding periods of shares or of the dividends received by those in receipt of the Entrepreneur Relief. Therefore, it is not possible to accurately estimate the cost of the proposals.
Regarding question 39806/19, I am advised by Revenue that capital gains tax (CGT) entrepreneur relief applies to an individual who disposes of qualifying assets which have been owned by that individual for a continuous period of at least 3 years in the 5-year period immediately prior to the disposal of the assets. The rate of CGT on such disposals is 10%.
To qualify for CGT entrepreneur relief, the qualifying assets must have been used for the purposes of a qualifying business carried on by the individual disposing of the assets. Land which has been leased by an individual to a long-term tenant would not, therefore, qualify for the relief as it will not have been used for the purposes of a business carried on by the individual concerned.
Regarding Question No. 152, it is assumed that the Deputy is referring to the higher lifetime CGT limit in the UK which applies to their Entrepreneur Relief scheme. I am advised by the Revenue Commissioners that latest estimates suggest that the cost of increasing the lifetime limit to €10 million, in the absence of any behavioural changes would have a full year cost of €81 million.
The Department of Finance produces a TSG paper annually on Capital Taxes. This year's Capital Taxes TSG paper, which can be found at https://assets.gov.ie/19127/bf33c368730e4dc58cc7c7930c9b8487.pdf provides useful information which may be of interest to the Deputies.