Cian O'Callaghan (Dublin Bay North, Social Democrats)
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351. To ask the Minister for Finance the number of persons that availed of the section 604A relief in each of the years 2014 to 2021; the number that were residential landlords; and if he will make a statement on the matter. [2091/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that section 604A of the Taxes Consolidation Act, 1997 provides for relief from Capital Gains Tax (CGT) on the disposal of certain investment property purchased between 7 December 2011 and 31 December 2014, where that property is held for  7 years. The gain attributed to that 7-year period will not attract CGT. However, where the property is held for more than 7 years, relief is reduced in the same proportion that the period of 7 years bears to the period of ownership, so if the property is held for 9 years, 7/9 of the gain will be relieved. 

This relief was amended in Finance Act 2017 for disposals made on or after 1 January 2018, to provide that gains on land and buildings acquired between 7 December 2011 and 31 December 2014 are not chargeable gains where the land or buildings are held for at least 4 years and up to 7 years from the date they were acquired. 

I would note that the structure of the relief means that 2018 is the first year that this relief could be claimed by taxpayers. 

I am advised by Revenue that the available information in relation to relief from Capital Gains Tax under section 604A of the Taxes Consolidation Act 1997 is published on Revenue’s website at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/relief-on-disposal-of-certain-land-or-buildings.pdf 

As indicated in the statistics at the above link, there were 890 claims made for relief under section 604A in 2019 (the latest year for which tax returns are available). Of these, 547 were associated with taxpayers who declared income in respect of residential property rental in the same year. There is insufficient information gathered on the tax returns to determine whether the properties covered by the relief are the same as those earning the rental income.