Written answers

Thursday, 26 March 2015

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

94. To ask the Minister for Finance the cost of reducing Capital Gains Tax to 30%; and if he will make a statement on the matter. [12644/15]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

95. To ask the Minister for Finance the cost of reducing Capital Acquisition Tax to 30%; and if he will make a statement on the matter. [12645/15]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

96. To ask the Minister for Finance the cost of increasing all Capital Acquisition Tax thresholds by 10% and 20% respectively; and if he will make a statement on the matter. [12646/15]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

97. To ask the Minister for Finance the cost of increasing the Category B Capital Acquisitions Tax threshold to €40,000 and €50,000 respectively; and if he will make a statement on the matter. [12647/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 94 to 97, inclusive, together.

I am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' new, enhanced, Statistics webpage:

.

In relation to the Deputy`s questions, detailed information on potential costs can be found in the post-Budget 2015 Ready Reckoner:

.

While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro-rata basis with those displayed in the Reckoner.

This indicates that the potential estimated cost of reducing the current Capital Gains Tax rate from 33% to 30% would be of the order of €45 million.

The potential cost from reducing current Capital Acquisition Tax rate from 33% to 30% would be of the order of €33 million.

The potential cost of increasing all Capital Acquisition Tax thresholds by 10% would be of the order of €19 million, and by 20% would be of the order of €38 million. 

The current threshold amount for category B is €30,150 and increasing this to €40,000 i.e., an increase of almost 33% would have a potential cost of €23 million while an increase to €50,000 would have a potential cost of €46 million.

All estimates are provisional and subject to revision. These estimates are based upon an assumption that there would be no behavioural impact of these changes. In addition, the costs shown from decreases in taxation on assets relating to property are subject to movements in the value of such assets.

In relation to the Capital Acquisition Tax costs shown above, it should be noted that these figures are tentative because some of the costs of increasing these reliefs would be offset by benefits not fully exceeding new threshold limits. 

Comments

No comments

Log in or join to post a public comment.