Michael McGrath (Cork South Central, Fianna Fail)
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Question 140: To ask the Minister for Finance the revenue that would be foregone by amending the universal social charge to raise the threshold for the 2% rate to €6,000 and €8,000 respectively; and if he will make a statement on the matter. [37708/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2012 incomes, of increasing the existing exemption threshold of €4,004 per annum for the Universal Social Charge (USC) to €6,000 per annum and € 8,000 per annum would be in the region of €10 million and €25 million respectively. These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the year 2012. They are therefore provisional and may be revised.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 141: To ask the Minister for Finance the revenue that would be raised from reducing the threshold for capital acquisitions tax for Category A to €250,000 and Category B to €25,000; and if he will make a statement on the matter. [37709/11]

Michael Noonan (Limerick City, Fine Gael)
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The current group tax free threshold amounts for Capital Acquisitions Tax (CAT) are: €332,084 for group A (gifts/inheritances from parents to children), €33,208 for group B (gifts/inheritances from grandparents to grandchildren, from uncles/aunts to nieces/nephews, and between siblings) and €16,604 for group C (all other gifts/inheritances). I am advised by the Revenue Commissioners that the additional yield from reducing the thresholds for CAT to €250,000 for Group A and €25,000 for Group B, as compared with the current thresholds, is estimated to be of the order of €33 million.

All estimates are based on transactions recorded in 2010. Revenue do not receive information on gifts and inheritances which currently do not have to be declared so it is not possible to estimate the potential yield if such benefits were brought into the tax net. The estimates are also determined by reference to the current CAT rate of 25% on amounts above the group tax-free thresholds.

It should be noted that these estimates are based upon an assumption that there would be no behavioural impact of the suggested changes, which could lead to a less than expected result from a change to the tax base. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, such as are currently occurring in the economy.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 142: To ask the Minister for Finance the revenue that would be raised from increasing the capital gains tax rates to 30% and 35%, respectively; and if he will make a statement on the matter. [37710/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the estimated full year gain from increasing the rate of Capital Gains Tax (CGT) from 25% to 30% is €83 million, and from 25% to 35% is €167 million. However, these estimates assume no behavioural changes on the part of taxpayers, and large increases in rates such as are contemplated in the question may have a significant behavioural impact. CGT is very dependent on individual behaviour and a change in rate may not produce a corresponding increase or decrease in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. The realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, as are currently occurring in the economy.