Written answers

Thursday, 21 January 2016

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael)
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56. To ask the Minister for Finance the cost of increasing the group A tax free thresholds (details supplied) to €308,000 and to €500,000; and if he will make a statement on the matter. [2598/16]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the costs of increasing the Capital Acquisitions Tax Group A tax free thresholds from the current €280,000 to the specified amounts are as shown in the table below.

Group A Tax Free ThresholdFirst Year Cost €mFull Year cost €m
€308,0001518
€500,0006575

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael)
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57. To ask the Minister for Finance the cost of increasing the small gift exemption from €500 to €650; and if he will make a statement on the matter. [2599/16]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the small gift exemption is an annual small benefits relief that applies to a one off benefit not exceeding €500, the value of which can be disregarded for PAYE/USC/PRSI purposes.

With a view to keeping the scheme simple and reducing administration on the part of employers, there is no notification procedure for employers involved.  Accordingly, the Revenue Commissioners do not have statistics on the uptake of the scheme, and therefore there is no basis on which to provide a cost in increasing the exemption.

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael)
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58. To ask the Minister for Finance the costs arising from a reduction in capital gains tax to 10% on the first €10 million of gains arising on chargeable business assets acquired from 1 January 2017 and held for five years, in each of the years 2017 to 2021; and if he will make a statement on the matter. [2630/16]

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael)
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59. To ask the Minister for Finance the costs arising from a reduction in capital gains tax from the application of a lower rate of 20% from 1 January 2017 to gains arising on investment in companies availing of the employment and investment incentive; and if he will make a statement on the matter. [2631/16]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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I propose to take Questions Nos. 58 and 59 together.

I am informed by the Revenue Commissioners that there is no basis from returns filed or other information available to Revenue to estimate the level of chargeable business assets that may be acquired from 1 January 2017 and held for five years. Therefore, no estimate is available of the cost of introducing a rate of 10% on the first €10 million of gains on chargeable business assets acquired from 1 January 2017 and held for five years.

I am further informed by the Revenue Commissioners that as information in respect of potential gains from investments in the Employment and Investment Incentive scheme is not available, it is not possible to indicate the potential cost of lowering the CGT rate to 20%.

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