Seán Canney (Galway East, Independent)
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196. To ask the Minister for Finance if he will reverse the proposed cap of €10 million, due to come into force on 1 January 2025, on retirement relief under the capital gains tax relief for a business being passed onto a child, as the cap will pose an existential threat to the viability of many family businesses; and if he will make a statement on the matter. [29505/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Deputy's question refers to a relief commonly known as 'CGT Retirement Relief'. In particular the Deputy refers to the relief available under section 599 of the TCA 1997 which 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.