John Brady (Wicklow, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

680. To ask the Minister for Finance if he plans to make any changes to the capital acquisitions tax which excludes structures that fall outside the group A category; and if he will make a statement on the matter. [42456/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I understand that the Deputy is referring to family relationships which currently do not fall within Group A for Capital Acquisitions Tax ('CAT') purposes.

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.

A link to this year’s paper on Capital Taxes can be found here: www.gov.ie/en/department-of-finance/collections/budget-2026-tax-strategy-group-papers/

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 longstanding 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.