Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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32. To ask the Minister for Finance if the principal private residence relief on capital gains tax allows persons to maintain principal private residence relief in circumstances in which they allow their home to be used by refugees; and if he will make a statement on the matter. [18497/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is probably aware capital gains tax (CGT) is, as a general rule, chargeable on a gain arising on the disposal of an asset at the rate of 33%. The first €1,270 of chargeable gains of an individual in any year are exempt from CGT.

Section 604 of the Taxes Consolidation Act, 1997 provides relief from CGT on the disposal of an individual’s principal private residence, being a dwelling house together with land occupied as its gardens or grounds up to an area (exclusive of the site of the residence) of one acre. If a property was occupied by an individual as his or her principal private residence for all or part of his or her period of ownership, then full or partial relief from CGT will be available where a chargeable gain arises on the disposal of that property. The last 12 months of ownership of the property by the individual is treated as a period of occupation for the purpose of this relief. In addition, it should be noted that an individual cannot have more than one principal private residence at any one time.

For the purpose of this question, it is assumed that it relates to a situation where an individual shares the property they consider to be their principal private residence with refugees, and that rent is not charged.

In answer to the question, the Deputy should be aware that while the availability of the relief depends on the facts of each case, the fact that an individual allows their home to be shared with refugees, in the circumstances outlined above, should not impact on a claim by that individual to principal private residence relief on the ultimate disposal of the property. I am advised by Revenue that there is an existing practice whereby small adjustments to the calculation of principal private residence relief need not be made where, for example, there is a lodger who has a private bedroom in the property but takes his or her meals with the family of the house.