Dáil Éireann Debate, Wednesday - 9 September 2020
100. Deputy Ged Nash asked the Minister for Finance the projected yield from abolishing relief under section 604A; the cost to date to the Exchequer annually of this relief; and if he will make a statement on the matter. [22933/20]
Amharc ar fhreagraSection 604A of the Taxes Consolidation Act 1997 provides relief, from CGT for property purchased in any state in the European Economic Area between 7 December 2011 and 31 December 2014, on any gain in respect of the disposal where that property is held for 7 years. Consequently, the gain attributed to that 7-year period will not attract CGT.
Finance Act 2017 amended the relief, providing that where the property is held for at least 4 years and less than 7 years, any gain will not be liable to CGT where the disposal is made on or after 1 January 2018.
Where the property is held for more than 7 years, relief is reduced in the same proportion that the period of 7 years bears to the overall period of ownership. For example, if the property is held for 9 years, relief will be provided on 7/9ths of the gain.
I am advised that Revenue has this year published a detailed statistical analysis of Section 604A relief from Capital Tax Gains, available at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/section-604a-relief.aspx.
Information in respect of Section 604A is available for the first time on 2018 tax returns. Information for later years will be published when returns for those years are filed. It is not possible to accurately predict the yield from abolishing the relief as information is not available in respect of possible future claims. The cost of the relief for 2018 is estimated at €113 million.
