Fergus O'Dowd (Louth, Fine Gael)
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84. To ask the Minister for Finance his views on an issue (details supplied ) relating to section 599 of the Taxes Consolidation Act 1997; his plans to amend the Act in view of this issue; and if he will make a statement on the matter. [12546/17]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy asked about the the capital gains tax (CGT) reliefs under Section 599 (Disposals within family of business or farm) of the Taxes Consolidation Act 1997. More specifically, in the details supplied, he asked why it is that under Section 599 those aged 55-65 pay no CGT if transferring qualifying assets to their children, or to a niece or nephew who has worked in the business (as the Act states "substantially on a full-time basis, for the period of 5 years ending with the disposal), but those aged 66 and over can only enjoy relief from CGT where the assets concerned are valued at no more than €3 million.     

I am advised by the Revenue Commissioners that individuals aged 66 or over who transfer qualifying assets to their children can qualify for CGT retirement relief provided those qualifying assets were owned and used by the individuals concerned for business or farming purposes for a period of at least 10 years prior to the disposal. Full relief from CGT applies on a gain arising in respect of a transfer of qualifying assets on or after 1 January 2014, where the market value of the assets is €3m or less. Where the market value of the assets is greater than €3m and the disposal is on or after 1 January 2014, section 599 of the Taxes Consolidation Act 1997 provides that relief will apply as if the value of the assets transferred were €3m. Only the gain on the amount in excess of €3m will be charged to CGT at the rate of 33%. 

In terms of the details supplied I should clarify that if an individual is aged 66 or over and transfers qualifying assets to their children, and if the value is more than €3m, relief is given to the individual transferring the assets on the gain up to the amount of €3m.

Marginal relief does not apply in the case of transfers by individuals aged 66 or over to their children.

I have no plans to amend the Taxes Consolidation Act 1997 in respect of this matter.