Written answers
Wednesday, 30 June 2021
Department of Finance
Tax Data
Pearse Doherty (Donegal, Sinn Fein)
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86. To ask the Minister for Finance the estimated revenue generated by introducing a 40% rate for capital gains tax in circumstances in which the person making the disposal has an annual income in excess of €400,000. [35363/21]
Pearse Doherty (Donegal, Sinn Fein)
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87. To ask the Minister for Finance the estimated revenue generated by introducing a 40% rate for capital gains tax in circumstances in which the person making the disposal has an annual income in excess of €300,000. [35364/21]
Pearse Doherty (Donegal, Sinn Fein)
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88. To ask the Minister for Finance the estimated revenue generated by introducing a 40% rate for capital gains tax in circumstances in which the person making the disposal has an annual income in excess of €200,000. [35365/21]
Pearse Doherty (Donegal, Sinn Fein)
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89. To ask the Minister for Finance the total chargeable gain and liability reported by individuals, not companies, with respect to capital gains tax with individual incomes in excess of €200,000, €300,000 and €400,000, respectively disaggregated by asset type in each of the years 2018 to 2020. [35366/21]
Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 86 to 89, inclusive, together.
I am advised by Revenue that the estimated yield generated from a rate of 40% on capital gains made on disposals by individuals with income greater than €400,000, €300,000 and €200,000 is €44m, €63m and €83m per year respectively. This is based on chargeable gains included on Income Tax and Capital Gains Tax (CGT) returns for the tax year 2018, the latest year for which full information is available. These estimates assume no change in behaviour by individuals resulting from the increase in the tax rate and do not include any yield in respect of companies.
Regarding Question 35366/21, the total chargeable gains returned and associated CGT liability for individuals with incomes over the thresholds specified, in respect of the year 2018, are set out in Table 1 below. The over €200,000 category in Table 1 includes the over €300,000 and €400,000 categories.
Table 1
| Gross Income | Chargeable Gain €m – All Asset Disposals | CGT Liability €m – All Asset Disposals |
|---|---|---|
| Over €200,000* | 1,260 | 391 |
| Of Which: Over €300,000** | 917 | 294 |
| Of Which: Over €400,000 | 638 | 206 |
*All those with incomes over €300,000 and over €400,000 are included in this row; ** All those with incomes over €400,000 are included in this row.
A breakdown by the main asset types is only available in respect of individuals disposing of single asset types in the tax year due to the structure of the tax returns. This information is set out in Table 2 below for the 2018 tax year.
Table 2
| Gross Income | Asset Type | Chargeable Gain €m – Single Asset Disposals Only* | CGT Liability €m– Single Asset Disposals Only* |
|---|---|---|---|
| Over €200,000 | Shares/Securities - Quoted | 375.7 | 113.3 |
| Shares/Securities - Unquoted | 367.6 | 116.1 | |
| Agricultural Land/Buildings | 12.9 | 3.9 | |
| Development Land | 17.9 | 5.8 | |
| Commercial Premises | 43.9 | 14.3 | |
| Residential Premises | 33.4 | 11.0 | |
| Shares or Securities exchanged (S. 913(5)) | 12.5 | 3.5 | |
| Other assets | 70.5 | 21.5 | |
| Of which: Over €300,000 | Shares/Securities - Quoted | 288.3 | 94.2 |
| Shares/Securities - Unquoted | 255.0 | 81.0 | |
| Agricultural Land/Buildings | 8.1 | 2.5 | |
| Development Land | 13.4 | 4.4 | |
| Commercial Premises | 36.7 | 12.0 | |
| Residential Premises | 21.6 | 7.1 | |
| Shares or Securities exchanged (S. 913(5)) | 8.3 | 2.5 | |
| Other assets | 49.1 | 15.6 | |
| Of which: Over €400,000 | Shares/Securities - Quoted | 217.7 | 71.3 |
| Shares/Securities - Unquoted | 131.3 | 42.2 | |
| Agricultural Land/Buildings | 3.2 | 0.9 | |
| Development Land | 8.5 | 2.8 | |
| Commercial Premises | 30.7 | 9.9 | |
| Residential Premises | 12.6 | 4.2 | |
| Shares or Securities exchanged (S. 913(5)) | 2.1 | 0.7 | |
| Other assets | 12.6 | 3.9 |
*Chargeable Gain and CGT liability totals in Table 2 do not equal that of Table 1 as the asset type breakdown presented is only available where a single asset type is disposed of.
The Deputy may also be interested in additional CGT information, which is published on the Revenue website at link: www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/summary-capital-gains-tax-returns.aspx.
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