David Stanton (Cork East, Fine Gael)
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82. To ask the Minister for Finance if his Department has carried out or commissioned a review or analysis of the current rate of capital gains tax; the way in which the national rates compare with rates in the UK and EU countries; his plans to make changes to the current rate; and if he will make a statement on the matter. [17079/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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In general, Capital Gains Tax (CGT) is charged on the value of the capital gain made on the disposal of an asset. The current rate of CGT stands at 33% cent for disposals made from 6 December 2012 with a limited number of exemptions and reliefs.

While Ireland's headline rate of CGT appears high compared with our European counterparts, in order to carry out a fair comparison, account has to be taken of the specific details of various CGT systems in different jurisdictions. This includes examining special rates, and reliefs and exemptions, rather than focusing solely on the applicable headline CGT rates for the purposes of comparison.

For example, there are a number of very generous and targeted reliefs from CGT already in existence in the Irish CGT regime including but not limited to the CGT Principal Private Residence Relief, the CGT Revised Entrepreneur Relief, CGT Retirement Relief and as well as relief for certain disposals of land or buildings acquired between 7 December 2011 and 31 December 2014.

In general, the availability of significant reliefs in respect of a particular tax head often requires a higher rate in order to generate an appropriate yield. Conversely, a wider base with fewer exemptions may facilitate a lower headline rate of tax as it applies to a wider set of economic and commercial activities potentially maintaining a more sustainable yield in the longer term. It is also important from a tax policy perspective to maintain stability and certainty in terms of taxation.

CGT is subject to ongoing review, which involves the consideration and assessment of the rate and the relevant reliefs and exemptions. CGT policy and legislation is reviewed by the Tax Strategy Group (TSG), as part of the annual Budget and Finance Bill process, and is considered in the wider tax policy context. Any changes to the CGT regime are considered in the context of the yearly Budget and Finance Bill process.