Gerald Nash (Louth, Labour)
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133. To ask the Minister for Finance to provide details of the projected cost in 2025 of revenue foregone, if plans to impose a capital gains tax liability on the transfer of family-owned businesses worth in excess of €10 million were not to proceed in the manner in which it is currently planned; and if he will make a statement on the matter. [38342/24]

Jack Chambers (Dublin West, Fianna Fail)
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Capital Gains Tax (‘CGT’) Retirement Relief applies to gains arising on the disposal of qualifying business or farming assets which are relieved from CGT where the person disposing of the asset(s) is aged 55 or over and both owned and used the asset(s) for the ten years prior to the disposal. The relief may apply on the transfer of business or farming assets within the family, or to third parties.

Finance Act 2023 introduced two changes to Retirement Relief on transfers within the family, to come into effect 1 January 2025. It increased the age at which the existing €3 million limit of relief applies, from 66 to 70. Moving the age threshold for this relief recognises the trend towards later retirement.

Secondly, it introduced a lifetime 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 to a child. The estimated cost in 2025 of revenue foregone, if plans to impose a capital gains tax liability on the transfer of family-owned businesses worth in excess of €10 million were not to proceed in the manner in which it is currently planned is approx. €15 million.