Written answers

Thursday, 13 July 2017

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

117. To ask the Minister for Finance his views on whether the seven year capital gains tax exemption introduced in budget 2012 is holding back the disposal of sites for development; if he has considered proposals for introducing a measure to reduce the holding period on these sites to four years; and the approximate costs for doing this in budget 2018. [33637/17]

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

118. To ask the Minister for Finance the number of properties acquired during the period from 7 December 2011 to 31 December 2014 that are potentially subject to the seven year capital gains tax exemption under section 604A of the Finance Act. [33638/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 117 and 118 together.

I am advised by Revenue that the exemption from capital gains tax referred to by the Deputy applies to land and buildings acquired in the period commencing on 7 December 2011 and ending on 31 December 2014 which are held for a minimum period of seven years. Accordingly, the earliest date that properties acquired in the relevant period can qualify for the exemption will be 7 December 2018. The relief applies in respect the purchase of land and buildings in the State or in any European Economic Area country. It is not possible to provide an accurate estimate of the quantity of land or buildings that were acquired when the CGT exemption was in place and would now be able to benefit from the exemption.

Any changes to the holding period would need careful consideration in terms of its potential impact on the property market generally and specifically on the supply of building land. Shortening the holding period could add complexity to the operation of the relief and could also contribute to uncertainty in the property market. It is difficult to estimate the cost of the specific change proposed by the Deputy as it would not be possible to determine in advance the extent to which sites may be disposed of if there was a change in the timing of the CGT exemption. The disposal of or retention of such sites may be driven by factors other than the rate of CGT such as specific business or operational decisions.

Comments

No comments

Log in or join to post a public comment.