Written answers

Thursday, 17 July 2025

Department of Finance

Tax Data

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Photo of Albert DolanAlbert Dolan (Galway East, Fianna Fail)
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224. To ask the Minister for Finance if he is considering reform of the capital acquisitions tax thresholds in Budget 2025 to address the disparity facing individuals without children or whose closest relationships fall outside group A; and if he will make a statement on the matter. [40382/25]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Capital Acquisitions Tax (CAT) is a beneficiary-based tax on gifts and inheritances that is payable on the value of the property received. 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.

There are three Group thresholds:

  • the Group A threshold (currently €400,000) applies where the beneficiary is a child of the person giving the gift or inheritance
  • the Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance
  • the Group C threshold (currently €20,000) applies in all other cases.
My officials have examined Capital Acquisitions Tax as part of the annual Tax Strategy Group exercise. The resultant papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. They are published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process

The Tax Strategy Group met on 15 July 2025 and it is expected that the relevant papers will be published in the next few weeks.

It should be noted 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.

As the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

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