Jackie Cahill (Tipperary, Fianna Fail)
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410. To ask the Minister for Finance if capital gains tax is applied to the sales price of a pub licence; and if he will make a statement on the matter. [17914/23]

Michael McGrath (Cork South Central, Fianna Fail)
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In general, capital gains tax (CGT) is chargeable on a gain arising on the disposal of an asset, including a pub licence, at the rate of 33%.

The chargeable gain arising on the disposal of an asset is generally the difference between the sale price and the base cost, being the cost incurred when acquiring the asset, however, where an asset is transferred other than by way of a transaction at arm’s length, e.g. between connected persons or as a gift, it is deemed to be disposed of and acquired at its market value. Incidental costs associated with the purchase and sale of the asset as well as any enhancement expenditure that may have been incurred may also be deducted in calculating the chargeable gain.

The first €1,270 of chargeable gains of an individual in any year are exempt from CGT. Depending on the circumstances, certain CGT reliefs may apply. Further guidance on the operation of CGT and associated reliefs can be found on Revenue’s website.