Thomas Pringle (Donegal, Independent)
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138. To ask the Minister for Finance whether a change to the capital gains tax, group B threshold will be reviewed and increased in Budget 2025, as it has not changed since 2010; and if he will make a statement on the matter. [27135/24]

Michael McGrath (Cork South Central, Fianna Fail)
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I assume the Deputy is referring to Capital Acquisitions Tax.

Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.

The Group A threshold is currently set at €335,000 and applies where the beneficiary is a child, including adopted children, stepchildren and certain foster children, of the disponer.

The Group B threshold is currently set at €32,500 and applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant such as a grandchild of the disponer.

The Group C threshold is currently set at €16,250 and applies in all other cases.

While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. The thresholds have been increased to the extent allowable by the available resources. In Budget 2019, the Group A threshold which applies primarily to gifts and inheritances from parents to their children was increased from €310,000 to €320,000 and again to €335,000 in Budget 2020.

You should be aware that there would be a significant cost in making further substantial changes to the CAT thresholds. Recent Revenue estimates indicate that the full cost of increasing the CAT Group B threshold from its current €32,500 to €50,000, €100,000 and €335,000 would be €53 million, €137 million and €248 million respectively.

The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.