Imelda Munster (Louth, Sinn Fein)
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288. To ask the Minister for Finance if his Department will carry out a feasibility study on a tax incentive scheme for the region surrounding Ireland West Knock Airport similar to that put in place for the Shannon Development Zone; if his attention has been drawn to any impediments that would prevent such a scheme from being put in place; if his Department has had contact with the Department of Transport, Tourism and Sport to discuss the possible delivery of such a scheme; and if he will make a statement on the matter. [20611/17]

Michael Noonan (Limerick City, Fine Gael)
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I assume that the deputy is referring to recommendations made by the Shannon Aviation Business Development Task Force in their final report of 12 November 2012, which is available at .

Following that report two specific measures were introduced, which are available in respect of any airport in the State and not restricted to activities at Shannon. The restriction of any measure to a particular airport or region would require the approval from the European Commission to ensure compliance with State aid rules.

The first of these measures was an accelerated capital allowances scheme for the construction and refurbishment of buildings and structures to be used for the maintenance, repair and overhaul of commercial aircraft and the dismantling of such aircraft for the purposes of salvaging or recycling parts or materials.

The second was the introduction of a stamp duty exemption in respect of enhanced equipment trust certificates for aircraft to assist the aircraft leasing sector.

In relation to the Shannon Development Zone, under section 445 Taxes Consolidation Act 1997, certain trading operations carried on by companies in Shannon Airport entitled these entities to a reduced tax rate of 10%. Certification by the Minister for Finance was required for the activities and the categories included:

- Repair or maintenance of aircraft;

- Trading operations that contributed to the use or development of the airport;

- Trading operations ancillary to the above two categories.

Such reliefs became contrary to EU state aid rules and the specific rules applying to the Shannon Development Zone expired on 31 December 2005.

Brendan Griffin (Kerry, Fine Gael)
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289. To ask the Minister for Finance if he will consider a reduction in capital gains tax in the 2018 budget; and if he will make a statement on the matter. [20823/17]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that it is estimated that annual the tax cost for each one per cent reduction in the standard Capital Gains Tax (CGT) rate of 33% is in the region of €25 million.

It is estimated that the tax cost of the annual exemption for individuals (€1,270) was €12m in 2015, the latest year for which full data are available.

Other costings are shown in the Revenue Ready Reckoner available at:

).

I do not have any immediate plans to reduce the rate of CGT or to increase the allowable tax-free annual gain. In common with all taxes, however, CGT is subject to on-going review, in which the rate of tax and all reliefs and exemptions are carefully considered. However, decisions concerning changes to taxes, generally, are taken in the course of the Budgetary and Finance Bill process, and I am sure the Deputy will not expect me to divulge any plans I may have for those at this time.