Bernard Durkan (Kildare North, Fine Gael)
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294. To ask the Minister for Finance the threshold for liability for capital gains tax or capital acquisitions tax; and if he will make a statement on the matter. [20311/15]

Michael Noonan (Limerick City, Fine Gael)
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In relation to Capital Gains Tax (CGT) the first €1,270 of gains made by an individual in any year are exempt from CGT. In addition, there are a number of specific exemptions and reliefs from CGT, including, for example, retirement relief and relief in respect of the disposal of a principal private residence.

For the purposes of Capital Acquisitions Tax, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.

There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A: tax free threshold €225,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: tax free threshold €30,150applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: tax free threshold €15,075 applies in all other cases.

There are other exemptions from CAT, including, for example, the annual small gifts exemption under which the first €3,000 of the total value of gifts received by a beneficiary from any one disponer in a year is exempt from CAT.

As with all areas of tax policy I will continue to keep these thresholds and reliefs under review, particularly in the context of the upcoming Budget process.