Michael Cahill (Kerry, Fianna Fail)
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29. To ask the Minister for Finance if he can examine a taxation matter raised in correspondence (details supplied);; and if he will make a statement on the matter. [6884/26]

Simon Harris (Wicklow, Fine Gael)
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Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. The group thresholds were most recently increased in Budget 2025.

Along with tax free group thresholds, various reliefs and exemptions are available in relation to CAT, including agricultural and business relief. There is also the small gift exemption, favourite niece or nephew relief, and the dwelling house exemption.

CAT thresholds are not correlated with property prices. A range of other factors must be considered when calibrating the group thresholds. Some of these policy considerations were examined by my officials in last year’s Tax Strategy Group (TSG) paper. The paper can be found at the following link: .

In line with the Programme for Government commitment to maintain a broad tax base CAT forms part of a suite of taxes which aim to address an over reliance on corporate tax and income tax.

The Deputy should note that there are significant costs associated with any change to CAT thresholds, and this has to be balanced against competing Government priorities. However you should be aware that I do recognise the burden of capital taxation, and in this regard I have asked my officials to keep the group thresholds under review as part of the annual Finance Bill/ Budget cycle.