Thomas Gould (Cork North-Central, Sinn Fein)
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346. To ask the Minister for Finance for an update on plans for deemed disposal tax. [62830/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy has asked about deemed disposal, which is an anti-avoidance measure that applies to investments in Irish domiciled investment funds and life assurance products, as well as equivalent offshore funds and certain foreign life assurance products. Under the deemed disposal rule, tax is levied eight years after an investment is made, and every subsequent eight years, regardless of whether or not a disposal has in fact occurred. The tax is levied on any gain in the value of the investment from the date of acquisition to the date of the deemed disposal. On the ultimate disposal of the investment, any tax paid is allowed as a credit against the final tax liability. The purpose of deemed disposal is to prevent the indefinite roll-up of income and gains and the associated loss of tax to the Exchequer.

I am aware of the concerns which have been raised in relation to the current regime for the taxation of retail investment, and the application of deemed disposal in particular.

I am committed to taking the necessary action to support retail investment in Ireland. The reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, that I announced in Budget 2026, is an important first step in this regard.

However, I am conscious of the need for further adaptation of the existing complex taxation regimes, encouraging retail investment while ensuring appropriate anti-avoidance protections. Therefore in Budget 2026 I also announced my intention to publish a roadmap early in 2026, setting out an approach to simplify and adapt the tax framework to further support retail investment. This roadmap will facilitate due consideration of the Funds Sector 2030 Report, which made recommendations in relation to deemed disposal. The roadmap will also take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope that further progress can be made across coming budgets to address some of the existing obstacles to greater retail investment.

Emer Currie (Dublin West, Fine Gael)
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347. To ask the Minister for Finance if he has considered any changes to the inheritance tax policy for individuals without children; and if he will make a statement on the matter. [62956/25]

Emer Currie (Dublin West, Fine Gael)
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348. To ask the Minister for Finance the estimated cost of making changes to CAT to address concerns regarding inheritance tax policy for individuals without children; and if he will make a statement on the matter. [62957/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 347 and 348 together.

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. CAT is charged at a rate of 33% above each Group threshold.

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.

Ruth Coppinger (Dublin West, Solidarity)
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349. To ask the Minister for Finance to consider an alternative system for local property tax for those estates that have not been taken in charge by a council, given issues that have arisen (details supplied); and if he will make a statement on the matter. [62972/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government decided upon the introduction of the Local Property Tax (LPT), that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions and no deductions. Limiting the exemptions and deductions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.

Local authorities put the proceeds of the LPT towards infrastructure and services in their areas, such as the maintenance and provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. All property owners benefit from this expenditure in their locality, regardless of whether they are obliged to pay management fees or not.

There is no exemption from, or reduction in, LPT for those paying management or apartment fees under the Finance (Local Property Tax) Act 2012 as amended. When a person pays a management fee, they receive services such as bin collection, maintenance of common areas and a sinking fund for repairs. These are costs that property owners or occupiers who do not pay management fees must meet from their own means.

The 2019 LPT Inter-Departmental Review Group looked at this matter but did not recommend that persons paying management fees be afforded relief in respect of LPT. Moreover, the review did not consider that there was a case for deductibility of such management fees against LPT.

A requirement to pay a management fee or service charge to property management companies is not relevant in determining whether a property is subject to the LPT. Accordingly, whilst those who are liable for these payments may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees, nor is there provision to offset the amount paid on management fees against LPT. I have no plans to change this.

James Geoghegan (Dublin Bay South, Fine Gael)
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350. To ask the Minister for Finance the steps his Department has taken to review or renegotiate Ireland's obligations under the Foreign Account Tax Compliance Act, particularly in relation to the requirement for Irish residents to complete US tax forms when opening bank accounts; if he will consider measures to reduce the administrative burden on non-US persons; and if he will make a statement on the matter. [62996/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland signed an Intergovernmental Agreement with the United States (US) in December 2012 to implement the US Foreign Account Tax Compliance Act (FATCA). This Agreement provides for a bilateral, and reciprocal, exchange of financial account information with the US.

As this is a reciprocal agreement, US financial institutions report details of accounts held by Irish Irish financial institutions report details of accounts held by US citizens and US tax residents. In the case of accounts held by Irish tax residents in US financial institutions, FATCA specifically requires that certain information be obtained by the US financial institution, including the name, address and Irish Tax Identification Number (TIN) of the account holder as well as details of income credited to the account. This information is then exchanged by the US with Ireland (Revenue).

In the case of accounts held by US citizens and US residents in Irish financial institutions, Irish financial institutions must obtain comparable information and report that information annually to Revenue by 30 June regarding the previous calendar year. Revenue exchanges this information with the US by 30 September each year. The first exchange of information between the US and Ireland happened in 2015.

The automatic exchange of information is regarded as the best system for ensuring that tax authorities can assess and collect the taxes they are due on income and capital that their residents have abroad. FATCA is one of many automatic exchange of information tools available to tax authorities including Revenue. The data provided through FATCA is used by Revenue to cross-reference with tax returns filed in Ireland, allowing for highly targeted compliance interventions and audits of non-compliant taxpayers.

The existence of the information exchange agreement also acts as a significant deterrent to individuals attempting to hide income, profits, or gains in US financial institutions to evade Irish tax obligations.

FATCA has served as a highly valuable tool in significantly enhancing tax transparency and compliance, and I do not plan to direct my officials in the Department of Finance to review or renegotiate this agreement with the US.

James Geoghegan (Dublin Bay South, Fine Gael)
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351. To ask the Minister for Finance if he will review the level of principal private residence relief available in cases involving primary carers and family-related absences; if he intends to examine how the relief applies to particular cases (details supplied), where current rules do not reflect the circumstances of many families; and if he will make a statement on the matter. [62997/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, Capital Gains Tax (CGT) arises in respect of chargeable gains accruing on the disposal of an asset, including residential property, at the rate of 33%. The first €1,270 of chargeable gains of an individual in any year are exempt from CGT.

Section 604 of the Taxes Consolidation Act 1997 (TCA 1997) provides relief from CGT on the disposal of one’s principal private residence (PPR). An individual may only have one PPR at any given point in time.

I am advised by Revenue that under Section 604(3) of the Taxes Consolidation Act 1997, full CGT relief will apply to an individual, if they dispose of a property that, for the entire period of ownership, was occupied by the individual as their PPR and used all the property as their home.

Where the residential property was not the individuals PPR during the whole period of ownership, only the proportion of the gain applicable to the period of occupation is exempt. The last 12 months of ownership of such a property by the individual is treated as a period of occupation for the purpose of this relief.

By way of example, if an individual both owned and occupied a residential property as their PPR for 10 years prior to disposal, no CGT will arise in respect of any chargeable gain which may accrue to that individual on foot of their disposal of the property. However, if the individual only occupied the property as their PPR for 7 of the 10 years in which they owned the property, they will pay CGT in respect of 20% of the chargeable gain which may arise, on the portion of the gain which relates to the period in which the individual did not occupy the property as their PPR. The last 12 months of ownership of a PPR is considered to be included in your period of occupation.

I am further advised by Revenue that there are specific absence types where an individual is considered to have lived in their property as their PPR but they do not apply in relation to the circumstances outlined.

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. Any changes to CGT are considered as part of the annual Budget and Finance Bill process.