Sean Barrett (Independent) | Oireachtas source

As the Minister noted on the last day, section 35 replaces the existing capital gains relief applying to disposals of qualifying business assets by individual entrepreneurs and business people with a simplified relief that will apply from 1 January 2016 and the new rate is 20% rather than 33%. The concern I expressed on the last day in respect of section 35 is that it is a subsidy to ex-entrepreneurs. Should there be some constraints that the money is reinvested in qualifying assets, not in property or other uses? Otherwise, it is a subsidy to people to get out of what all Members seek to promote, namely, entrepreneurship, new products and additional employment. Should constraints be placed on people qualifying for the 20% rate as to how the funds are used? While the aspiration was that one would sell one's first business to reinvest in subsequent businesses, as that is how entrepreneurs are formed and they get better each time, supposing they simply buy property?