Francis Noel Duffy (Dublin South West, Green Party)
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112. To ask the Minister for Finance if the increased rate of stamp duty announced under Budget 2025 will apply to properties which have already reached sale agreed. [40229/24]

Jack Chambers (Dublin West, Fianna Fail)
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I announced on Budget Day that a new 6% rate of Stamp Duty will be applied to the value of residential property in excess of €1.5 million (so increasing the rate applied to that element of a property's value from 2% to 6%), and that the higher rate of Stamp Duty on bulk acquisitions of houses is to be increased from 10% to 15%. Both of the increased rates apply to all relevant instruments of transfer executed after midnight on 2 October 2024.

I also announced on Budget Day that transitional arrangements would apply where there is a binding contract in place before 2 October 2024 and the transfer of the property is finalised before 1 January 2025. In these circumstances a purchaser can benefit from the previous rates. However, any person wishing to rely on the transitional arrangements must produce a copy of the executed instrument of transfer which must contain a certificate to this effect.

I am advised by Revenue that reaching sale agreed does not, in itself, confirm that the parties to a transaction had entered into a binding contract for the conveyance of property. If individuals are in doubt about the status of a transaction, they should consult with their legal advisors to determine whether they had, in fact, entered into a binding contract before 2 October 2024 and whether the instrument transferring the property will be executed on or before 1 January 2025.

Gerald Nash (Louth, Labour)
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113. To ask the Minister for Finance further to his reply to Parliamentary Question No. 133 of 26 September 2024, the number of persons it is anticipated that stand to benefit from the changes announced in Budget 2025 in regard to the capital gains tax retirement relief regime, based on the assessment contained in his reply to the referenced Parliamentary Question; and if he will make a statement on the matter. [40248/24]

Jack Chambers (Dublin West, Fianna Fail)
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Section 599 of the Taxes Consolidation Act 1997 (‘TCA 1997’) provides for relief from Capital Gains Tax (‘CGT’) on the disposal of qualifying assets by individuals aged 55 years or more to a child, as defined in the section.

Following the enactment of Finance (No.2) Act 2023, where an individual aged 55 to 69 years, inclusive, transfers qualifying assets to a child on or after 1 January 2025, a €10 million lifetime limit applies to the value of the qualifying assets which may be relieved from CGT in full under section 599 TCA 1997.

In delivering Budget 2025 on 1 October last, I confirmed that, as part of Finance Bill 2024, should a CGT liability arise on the transfer, on or after 1 January 2025, of qualifying assets, the value of which exceeds this lifetime limit, such CGT liability may be deferred by the individual making the disposal on the basis that the child to whom the qualifying assets transfer continues to hold the qualifying assets for a period of 12 years. Should the child dispose of the qualifying assets prior to the end of this retention period, the child becomes liable for the individual’s deferred CGT liability, as well as any CGT liability which arises in respect of any chargeable gain accruing to the child on their disposal of the assets. Should the child retain ownership of the assets for the whole of the retention period, they may claim an abatement of the deferred CGT on the expiry of the retention period.

As the proposed deferral and potential abatement of CGT liabilities arising in the circumstances outlined above will only apply to transfers of qualifying assets which take place on or after 1 January 2025, the number of persons who may, in the future, benefit from the proposed amendment cannot be quantified based on current data.