Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

This section amends Schedule 2 of the Capital Acquisition Tax Consolidation Act 2003. The Schedule deals with the computation of CAT. The section gives effect to the proposals announced by the Minister for Finance in the budget statement to reduce the Group A tax free threshold from €250,000 to €225,000, the Group B tax free threshold from €33,500 to €30,150 and the Group C tax free threshold from €16,750 to €15,075 and to increase the rate of CAT from 30% to 33%. The group thresholds depend on the relationship of the person making the gift or inheritance to the beneficiary of that gift or inheritance, the reduction in the group tax free threshold by 10%, together with the increase in the rate of CAT and a similar increase in the rate of CGT is necessary in order to raise additional tax revenue. The estimated yield from this measure is €30 million this year and €42 million in a full year. The amendment applies to gifts and inheritance taken on or after 6 December.