Written answers
Thursday, 4 October 2018
Department of Finance
Tax Exemptions
Pearse Doherty (Donegal, Sinn Fein)
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77. To ask the Minister for Finance the cost implications of a €500 increase or decrease in the small gift exemption under capital acquisitions tax rules; and if he will make a statement on the matter. [40390/18]
Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by the Revenue Commissioners that where recipients qualify for the small gift exemption from Capital Acquisitions Tax, i.e. they have received a gift (or gifts) from an individual within a calendar year, which does not exceed €3,000, then there is no obligation to submit a return to Revenue. As a consequence there is no data available to Revenue to estimate the impact of reducing the threshold by €500.
A recipient is however obliged to submit a return where the €3,000 threshold is exceeded. Based on returns of gifts for the tax year 2017, I am advised by Revenue that the estimated tax cost of increasing the threshold by €500 would likely be less than €1 million.
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