Shane Ross (Dublin South, Independent)
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283. To ask the Minister for Finance his plans to introduce tax incentives for those wishing to downsize their family home; and if he will make a statement on the matter. [11929/15]

Michael Noonan (Limerick City, Fine Gael)
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I have no plans to introduce incentives along the lines suggested by the Deputy. The Deputy will appreciate that tax reliefs and exemptions have costs which have to be paid for and their introduction must be considered only where there is a clear economic and social policy need to be addressed. 

It should be noted in relation to local property tax (LPT), that where a person downsizes their residential property, assuming they stay in a similar location to the property they are selling, their LPT liability will, most likely, be less than the amount they would have been liable for on their original property.

In relation to what might also be regarded as property-related taxes, Stamp Duties are payable on the acquisition of residential property.  The current rates are 1% on values up to €1 million and 2% on any balance over that. I do not consider that a rate of 1% on the purchase of a property would represent a serious disincentive to any property owner considering trading down.

In relation to Capital Gains Tax (CGT), an exemption is in place on the disposal of a person's principal private residence.  The exemption applies to any gain made on the disposal of an individual's dwelling house together with land occupied up to an area of one acre, excluding the site of the house. Full CGT relief applies where the period of occupation matches the period of ownership, and partial relief applies where the house has not been occupied by the individual for the full period of ownership.