Shane Moynihan (Dublin Mid West, Fianna Fail)
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494. To ask the Minister for Finance if he will consider introducing a preferential capital gains tax rate for landlords who have made their properties available for social housing at below market rates over an extended period; and if he will make a statement on the matter. [44763/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Capital gains tax (CGT) may arise in respect of gains arising on the disposal of an asset at the rate of 33%. The first €1,270 of chargeable gains of an individual in any year are exempt from CGT.

Existing legislation does not provide for a preferential CGT rate on the disposal by landlord of a property let for the purposes of social housing at below-market rates over an extended period. However, the Deputy might note that there are CGT reliefs currently provided for in the legislation that are specific to gains arising on the disposal of land or buildings.

One such relief is provided for in section 604A of the Taxes Consolidation Act 1997. This section gives relief from CGT on a disposal of property purchased in any state in the European Economic Area (including Ireland) and the UK between 7 December 2011 and 31 December 2014, where that property is held for 7 or more years. The gain attributed to that 7-year period will not attract CGT. Where the property has been owned for a period of more than 7 years, relief is given on the gain in the proportion that the period of 7 years bears to the entire period of ownership. For example, if the property was owned for 10 years, relief will be given on 7/10ths of the gain arising on the disposal of the property. Where the property is held for at least 4 years and less than 7 years, any gain will not be liable to CGT where the disposal is made on or after 1 January 2018. To avail of the relief, any income, profits or gains from the property must be subject to Irish income tax/corporation tax. As such, should a landlord have purchased a property within the acquisition period of 7 December 2011 to 31 December 2014, and has been subject to tax on the rental income arising from the property, partial relief from CGT may be available in respect of gains arising on the disposal of the property, subject to all conditions of the relief being met.