Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Deputies have identified an issue where some people are considering whether to retain or sell a property, whether it is a home or another asset. While that is the case, it is important we respect the fundamental principles of our taxation system that where commitments are given by the Oireachtas and are legislated for, they would be honoured over the period. To not do so would bring a significant legal risk on the Exchequer which is not a risk I would be prepared to take. Deputy Doherty is right on the calculation methodology of tapering. You do hold on to whatever proportion of your overall ownership the seven years relates to at 0%. Then the balance of the gain is worked out proportionately using the methodology in the normal CGT system and taxed in that way. I do not see a way of addressing that issue which respects the fundamental principle of consistency, honouring commitments that have been given legally and not exposing the State to a significant level of risk.