Simon Harris (Wicklow, Fine Gael) | Oireachtas source

While I do not disagree in principle with the Senator that there is a need to go further in this regard, the Minister adjudicated how far he could go this year in line with the fiscal space available to him.

As we all know, the capital acquisitions tax threshold has been reduced a number of times over the last couple of years, while the rate has also been increased. These changes were necessary to maintain the yield from capital taxes in a period of falling asset prices so that such taxes would continue to make a contribution to our efforts to consolidate our public finances. As part of budget 2016, the Group A threshold applying to gifts and inheritance from parents to their children was raised from €225,000 to €280,000. This represents an increase of approximately 25%. This was done in recognition of the improving state of the national finances and in light of concerns expressed to the Minister by people making and receiving gifts and inheritance, particularly in the context of a rising property price market.

In allocating limited resources for the budget choices had to be made. If the Minister went further in this regard he would have had to do something less elsewhere. As the economic recovery continues to take hold, available resources have been focused on reducing the burden of taxation on earned income and take home pay, where high taxes impact on our competitiveness and economic growth and job creation. This was also the main focus of the last budget. The Minister has indicated that the change to the Group A tax-free threshold in this year's budget is only the start of a process. Subject to the outcome of the forthcoming general election and the consultation one must have with the people in that regard, this is an issue on which the Minister, if he is in a position to deliver another budget - which I hope will be the case - is willing to go further. The Minister will continue to examine the scope for further improvements in line with that suggested by the Senator as our economic recovery continues. There is a recognition among all of us that this is an area in respect of which more needs to be done. That process was commenced this year. The Minister has gone as far as he could and, therefore, I cannot accept this recommendation.