Barry Ward (Dún Laoghaire, Fine Gael)
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47. To ask the Minister for Finance his views on the merits of amending existing inheritance tax parameters; if the existing relationship category thresholds can be reviewed; and if he will make a statement on the matter. [16250/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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.

While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.

Gifts and inheritances between spouses and civil partners are exempt from CAT. There are also a number of exemptions and reliefs from CAT that may apply depending on the circumstances of the case, including reliefs which apply to relationships within the Group A threshold.

One such exemption is the CAT dwelling house exemption. Where a person takes an inheritance of a dwelling house, that person may be able to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the disponer’s principal private residence at the date of death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in a nursing home. The beneficiary must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. In addition, the beneficiary must not have a beneficial interest in any other residential property. Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf.

As the Deputy is aware, there is provision in CAT legislation for a niece or nephew of the disponer to avail of the Group A threshold where the gift or inheritance consists of business assets and certain conditions are met. The niece or nephew must have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.

My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. These papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. These papers are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.

The Deputy should note that there would be a significant cost in making any further substantial changes to CAT.? The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.

Naoise Ó Cearúil (Kildare North, Fianna Fail)
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48. To ask the Minister for Finance if he will be reviewing the category C thresholds in relation to capital acquisitions tax; and if he will make a statement on the matter. [16281/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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.

While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.

My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. The papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. These papers are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.

The Deputy should be aware that there would be a significant cost in making any further substantial changes to CAT including the category C thresholds.? In this regard, the options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.

Joanna Byrne (Louth, Sinn Fein)
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49. To ask the Minister for Finance if he will consider increasing the betting tax levy by 1%, and noting the disparity in funding for sports, commit to directing a portion of these funds into Irish football with a view to improving facilities, upgrading training grounds and modernise stadiums; and if he will make a statement on the matter. [10152/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Betting Duty is chargeable on all bets placed by a person with a licensed bookmaker at a bookmaker’s registered premises, irrespective of the means by which a bet is placed. Licensed Remote Betting Intermediaries are liable for Betting Intermediary Duty, on commission charged by them to persons in the State.

The rate of duty depends on the type of betting activity and how the bet is placed. The rate of betting duty for bets place with a licensed bookmaker within the State either over the counter or via remote means is 2%. The rate of Betting Intermediary Duty on commission is 25%.

Betting duty is reviewed annually as part of the annual Budget process. Options in regard to rates are presented to the Tax Strategy Group (TSG) in the TSG General Excise paper which is published online on the website of the Department of Finance. Any decision in relation to rates will be taken in the context of Budget 2026.

With regard to the use of funds arising from Betting Duty, the Deputy should note that Revenue raised from Betting Duty accrues to the Exchequer and there is no hypothecation/ring-fencing of Betting Duty receipts to any sport or sporting body. Such funding matters are for the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and the Department of Public Expenditure, NDP Delivery and Reform to consider as part of the annual estimates process.

Erin McGreehan (Louth, Fianna Fail)
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50. To ask the Minister for Finance if he plans any changes to the disabled drivers and disabled passengers (tax concessions) scheme. [16061/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.

However, this is very much a matter for Government as whilst my Department has oversight of the DDS, I do not have responsibility for disability policy.

As the Deputy is aware the National Disability & Inclusion Strategy or NDIS Transport Working Group recommended that the DDS be replaced with a modern, fit-for-purpose vehicular adaptation scheme. This is in line with the general view that we need to move away from a medical criteria-based approach to a needs-based approach.

Under the aegis of the Department of the Taoiseach, the sub-group convened to progress NDIS proposals for needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, have generated a report that has been submitted to the Department of the Taoiseach, for its consideration.

In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.

John Connolly (Galway West, Fianna Fail)
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52. To ask the Minister for Finance the progress his Department is making in examining the tax treatment of production costs for theatre productions, as per the commitment in the Programme for Government; and if he will make a statement on the matter. [16245/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government, as indicated in the Programme for Government document launched in January 2025, has committed to examine the tax treatment of production costs for theatre productions.

The Deputy will be aware that the Programme for Government is a five-year plan and as such, officials of my Department have not commenced work on the commitment at this early stage.

Once officials commence work in this space, engagement with the sector will take place to understand how it operates, the challenges it is facing, and what policy levers may be effective and efficient in supporting the sector. The design and policy objectives of comparable supports in other jurisdictions will also be examined, and in due course officials will make recommendations for my consideration.

It is currently not expected that this process will conclude ahead of this year’s Finance Bill. However, the Deputy may be aware that there is a broad range of tax-based supports currently available for the creative sector in Ireland, including two new measures introduced as part of Budget 2025. Section 481 was amended to provide for an uplift of 8% to the existing rate of 32% for small to medium sized feature film productions with a maximum qualifying expenditure of €20 million (the Scéal Uplift), and a new credit has also been introduced for Unscripted Productions, which provides for a 20% credit on eligible expenditure of up to €15 million per production.

Both measures were introduced subject to commencement orders, pending receipt of State aid approval from the European Commission. Approval has recently been received in respect of the Scéal Uplift and steps are now being taken to finalise regulations and commence the relief. Officials continue to work closely with the Commission with a view to obtaining approval for the Unscripted Production measure.