Michael McGrath (Cork South Central, Fianna Fail)
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It is important to consider the potential impacts and unintended consequences of providing preferential tax treatment to the proceeds of a sale of a property by a landlord to their tenant.

As you are aware any tax exemption has the potential to distort the market, and this can certainly be the case with the property market. Such an exemption could further increase house prices for purchasers, and could reduce considerably the number of houses available to rent. Previous experience with tax incentives in this area has demonstrated a considerable potential for unexpected consequences to such changes, which can end up being unhelpful to the broader market. In addition there is the potential to subsidise disposals that might have occurred in any event, resulting in deadweight cost to the State and taxpayers.

However, I am very conscious of the need to address the housing and rental crisis by all means available. CGT, as with all taxes is subject to ongoing review, consideration and assessment of the rate of CGT and the relevant reliefs and exemptions and is considered as part of the broader tax strategy and the normal Budget process.