Paul Kehoe (Wexford, Fine Gael)
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97. To ask the Minister for Finance his views on whether the upcoming changes to capital gains tax in the Finance Act will affect family businesses valued in excess of €10 million; if reinstatement of full relief will be considered; and if he will make a statement on the matter. [26725/24]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware, Section 598 of the TCA 1997 grants relief from CGT on disposals by individuals aged 55 and over of qualifying business or farm trade assets to persons other than that individual’s child. Where an individual is aged 55 to 65 and the consideration received on the disposal of such assets does not exceed €750,000, full relief is given. For an individual aged 66 or over, full relief is given where the consideration for the disposal of such assets does not exceed €500,000. Marginal relief may apply to disposals above those thresholds which serves to limit the CGT chargeable on disposal to one-half of the difference between the amount of the consideration and the relevant threshold. The thresholds apply lifetime limits of relief under this threshold.

Section 599 of the TCA 1997 grants relief to individuals who dispose of qualifying assets used in the course of a business or farm trade to a child, as defined in the section. Currently unrestricted relief is granted on the disposal of such assets by individuals aged 55 to 65 and the relief is capped at €3 million for individuals aged 66 or over.

Finance Bill 2023 increased the age at which the current €3 million threshold applies, from 66 to 70, and introduced a limit of €10 million on the value of qualifying assets in respect of which relief is available where such assets are disposed of by individuals aged 55 to 69 to a child. The new €10 million limit is informed by the recommendations made by the Commission on Taxation and Welfare in respect of retirement relief in their report published in September 2022. The new age limits and the €10 million cap will apply to disposals made on or after 1 January 2025.

I understand the importance of ensuring the smooth intergenerational transfer of such businesses from one generation to the next so that they can continue to grow and contribute to the economy. I have asked my officials to engage with relevant stakeholders to discuss their concerns. I will further consider this matter once this engagement has concluded.