Richard Bruton (Dublin Bay North, Fine Gael)
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392.To ask the Minister for Finance the thresholds and rates for capital acquisition tax; if the tax advisory group has evaluated how these thresholds relate to current property values; his views on the appropriate relationship for different categories of recipient; and if he will make a statement on the matter.[35871/24]

Jack Chambers (Dublin West, Fianna Fail)
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In relation to the tax advisory group I assume the Deputy is referring to the Commission on Taxation and Welfare. The Commission on Taxation and Welfare published their report 'Foundations for the Future: Report of the Commission on Taxation and Welfare' on 14 September 2022, it is available on www.gov.ie/en/publication/7fbeb-report-of-the-commission/. Chapter 7 of the report examines and makes recommendations in regards to Capital Acquisitions Tax (CAT).

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.

Cormac Devlin (Dún Laoghaire, Fianna Fail)
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393.To ask the Minister for Finance if he will consider increasing the tax-free thresholds at which children in group A and close relatives in group B can inherit property and assets from their family as part of Budget 2025; and if he will make a statement on the matter.[35908/24]

Jack Chambers (Dublin West, Fianna Fail)
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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.

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.

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