Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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496. To ask the Minister for Finance to publish any internal Departmental analysis regarding potential changes to capital gains tax and its projected impact on SMEs, family farms and intergenerational wealth transfer. [44882/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Capital Gains tax (CGT) is a broad ranging tax applying across a wide range of areas some of which have been highlighted in the Deputy’s PQ.

Each year CGT is examined as part of the annual Capital Taxes Tax Strategy Group exercise. The resultant paper outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. Some years, there is more detail and more analysis than others of CGT. For instance, this year there was a greater focus on Capital Acquisitions Tax. The paper is published in advance of the Budget and is the best means of considering issues such as CGT 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.

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/

The Department of Agriculture, Food and Marine are currently engaged, with the cooperation of the Department of Finance and Revenue, in preparing an updated combined set of guidelines for CGT Farm Restructuring Relief and CGT Farm Consolidation Relief, as required under the provisions of section 604B(1)(b)(i) Taxes Consolidation Act 1997 and section 81C (1)(b) SDCA 1999. These are for the purposes of regulating applications and making public the conditions applied by Teagasc in order for it to issue Farm Restructuring and Farm Consolidation Certificates.

On the 22nd of October 2024, following Government approval, my predecessor published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ a wide-ranging review of the funds and asset management sector. The Review fulfilled a recommendation of the Commission on Taxation and Welfare 2022 report which called for an examination of the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible. The Funds Review examined CGT and outlined a number of potential changes.

Further details on the Funds Sector 2030 review can be found here: www.gov.ie/en/department-of-finance/publications/funds-sector-2030-a-framework-for-open-resilient-developing-markets/

As with all taxes, CGT is subject to ongoing review, which involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions from CGT.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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497. To ask the Minister for Finance if he is considering a temporary reinstatement of the 9% VAT rate for food-led hospitality businesses in response to the current wave of closures and industry distress; and if not, the reason. [44889/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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.

In the Programme for Government 2025 it was pledged to support SMEs, particularly those in the retail and hospitality sectors, by examining changes to VAT, PRSI and other measures. Any changes to tax rates, including to the timing and scope of such changes, must be done by balancing their impact against their cost on the overall budgetary framework. This will be done as part of the budget process.