Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 27:

In page 30, line 37, to delete “disposals occurring” and substitute “disposals occurring, or unrealised profits or gains recognised in the income statement,”.

This amendment is technical in nature. On Committee Stage I introduced an amendment to the Irish real estate fund, IREF, regime to remove, from 1 January 2019, the exemption which applied to profits arising from the capital gains on land held for more than five years. Given the changes I am making elsewhere in the Finance Bill on CGT and stamp duty, I felt that it was important that this provision was also amended for consistency. In applying this provision from the start of 2019, I am ensuring that this change is introduced in a timely way while avoiding any undue disruption.

As this measure was only introduced in Finance Act 2016 I felt it would be imprudent to completely remove the measure just one year after implementation. Doing so would negatively affect our position regarding the certainty of our tax system, which is critically important in terms of investment. Signalling this change one year in advance will help to negate any negative effect this change may have regarding confidence in the certainty of our tax code.

This technical amendment ensures that the same treatment is afforded to both realised gains and unrealised gains. I commend this amendment to the House.

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