Written Answers Nos. 260-279
260. Deputy Darren O'Rourke asked the Minister for Finance the efforts he is making to support motor sports in Ireland, particularly relating to the ability to secure insurance cover; and if he will make a statement on the matter. [44208/24]
View answerSecuring a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland is a key policy objective for this Government. It is recognised that a small number of sectors, including motorcycle sports, are currently facing difficulty in terms of affordability and availability of insurance. Government has therefore prioritised the implementation of the Action Plan for Insurance Reform, which aims to improve the cost and availability of insurance for all groups, including sporting organisations. The latest Implementation Report, demonstrates that significant progress has been made, with approximately 95 percent of the actions either delivered or initiated.
There are clear indications that the market is responding to the Government reform agenda, with insurance now available in previously challenging areas such as equestrian activities, inflatable hire, ice-skating, play centres, and SMEs.
Furthermore, one of the most significant developments of the Action Plan has been the implementation of the Personal Injuries Guidelines, which have reduced average award levels significantly. According to the latest NCID report, currently 63 percent of all claims and 27 percent of litigated claims are being settled under the new Personal Injuries Guidelines. This indicates a shift from the older system based on the Book of Quantum. In addition, the Injuries Resolution Board is now handling more cases, increasing efficiency, as compensation and legal costs are lower than in litigated cases.
Government has consistently emphasised its clear expectation that insurers should pass-on any savings arising from the reform agenda to customers. Minister of State Richmond has met with the main insurers in the Irish market and impressed upon them the need to reflect lower claims costs through reduced premiums, but also to expand their risk appetite to provide cover to lesser-served, ‘pinch-point’ sectors, such as motorsports.
Separately, the Deputy may be aware that the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media continues to work closely with Sports Ireland to investigate the question of insurance in the wider sports sector. Accordingly, National Governing Bodies have been invited to contribute to this development. Officials from the Department of Finance remain in contact with their counterparts and all queries regarding this exercise should be directed to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
In conclusion, the Government remains steadfast in its commitment to achieving a competitive and sustainable insurance market, ensuring the availability and affordability of insurance for all sectors. The ongoing implementation of the Action Plan for Insurance Reform, continues to deliver on the Government’s reform agenda, making Ireland a more attractive destination for insurers and ultimately benefiting all sectors.
261. Deputy Gary Gannon asked the Minister for Finance what measures are in place to ensure that the treatment of businesses making repayments as part of the warehouse repayments scheme is fair, transparent, and not excessively punitive, particularly when they are making regular payments; and if he will make a statement on the matter. [44234/24]
View answer262. Deputy Gary Gannon asked the Minister for Finance his Department’s process for examining whether the use of sheriffs is necessary or appropriate in situations where businesses are compliant in their repayment arrangements as part of the tax warehousing scheme; and if he will make a statement on the matter. [44235/24]
View answer263. Deputy Gary Gannon asked the Minister for Finance if sheriffs employed by his Department are employees of the State, or privately contracted; to provide details on the vetting process for the employment of sheriffs; and if he will make a statement on the matter. [44236/24]
View answerI propose to take Questions Nos. 261 to 263, inclusive, together.
Sheriffs are Officers of the Court, holding office under Section 12 of the Court Officers Act, 1945. They are appointed by Government following public competitions held by the Public Appointments Service (PAS). Their debt collection activities, including seizure procedures, are covered by the Enforcement of Court Orders Act, 1926, as amended. Even though Sheriffs are appointed by Government, they are not considered public servants or employees of the State. The Department of Justice has responsibility for the Sheriffs and the clearance processes when a new Sheriff is being appointed, including the vetting process.
One of the primary functions of Revenue is the collection of tax and ensuring that all taxpayers pay the correct amounts due in a timely manner. This ensures that the Exchequer is funded to meet the needs of citizens and a ‘level playing field’ is maintained for the majority of businesses who are timely in their tax compliance. The majority of taxpayers want to do the right thing and continue to file and pay their taxes on time, and do not require follow-up from Revenue to pay outstanding debts.
I am advised that Revenue only refers outstanding tax liabilities to its enforcement agents, including Sheriffs, as a last resort. Before any such action is taken, Revenue makes every effort to engage with the taxpayer to resolve the situation. Revenue will always seek to work proactively with businesses experiencing cashflow difficulties, provided the viability of the business is sound and there is meaningful and honest engagement to find mutually agreeable solutions.
There are a number of ways in which Revenue provides assistance to taxpayers experiencing difficulties in paying their tax liabilities. For example, Revenue offers taxpayers flexible Phased Payment Arrangements (PPAs) to pay off their debt in instalments over a reasonable period of time, both for warehoused and non-warehoused tax debts. In addition, payment breaks and payment deferral options are available when temporary cash flow difficulties arise during the arrangement term. Taxpayers who have been granted a payment arrangement that includes warehoused debt have the benefit of a 0% interest rate on that warehoused debt, provided they adhere to the agreed monthly repayments and keep paying their current tax liabilities as they arise. There are currently over 12,000 customers availing of flexible payment arrangements at 0% interest for warehoused liabilities totalling €1.18 billion.
Revenue has confirmed to me that businesses who are making regular repayments in accordance with the terms of their PPA established under the debt warehouse scheme and who are also meeting their current tax liabilities as they fall due are deemed fully compliant and are not subject to any action.
It is important to note that Revenue encourages taxpayers to engage early when payment difficulties arise and will always have regard to the particular circumstances of each case prior to considering enforcement action. Revenue has a strong track record of successfully working with individuals and businesses to resolve their payment difficulties without resorting to enforcement action.
264. Deputy Gary Gannon asked the Minister for Finance given current tax clearance certificate policies, which prevent businesses from applying for grants or new State contracts without one, to clarify why this policy also prevents payments to businesses that have completed work on existing State contracts (details supplied); if his Department will consider reviewing these regulations to ensure payments are not unduly disrupted; and if he will make a statement on the matter. [44237/24]
View answerI would note at the outset that my Department officials made several attempts to contact the Deputy's office to obtain clarification on the circumstances which prompted this question, but unfortunately did not receive a response. As such, the following outlines tax clearance procedures more generally, but should the Deputy wish to seek information on a specific matter concerning the current procedures, he may wish to contact my office directly with the details.
A Tax Clearance Certificate is confirmation from Revenue that an applicant's tax affairs are in order. However, Revenue may issue a Tax Clearance Certificate to a customer who has tax arrears where the arrears are covered by an instalment arrangement.
As such, tax clearance is required for various purposes, such as renewal of a variety of licences and permits, public sector contracts, grants, subsidy payments and Government supports. The current tax clearance procedures in relation to the payment of grants, subsidies and similar type payments by Government Departments and other public sector bodies are set out in Circular 44/2006. Meanwhile, the current tax clearance procedures in relation to Public Service Contracts are set out in Circular 43/2006.
The procedures in these circulars have applied to all applications received after 1 January 2007 and there are currently no plans to amend them. It should be noted, however, that the Department of Public Expenditure, National Development Plan Delivery and Reform has responsibility for public sector procurement rules generally.
Further details on the current tax clearance procedures in respect of grants, subsidies and similar type payments is available at: circulars.gov.ie/pdf/circular/finance/2006/44.pdf
Meanwhile, further details on the current tax clearance procedures in respect of public sector contracts is available at: circulars.gov.ie/pdf/circular/finance/2006/43.pdf
265. Deputy Matt Shanahan asked the Minister for Finance to outline the exit tax collected on ETFs in the past five years, in tabular form; the relative prevailing tax rate for each year; and if he will make a statement on the matter. [44251/24]
View answer266. Deputy Matt Shanahan asked the Minister for Finance to outline the exit tax collected on ETFs, specifically related two taxpayers reporting under the self-assessment scheme over the past five years, in tabular form; the relative prevailing tax rate for each year; and if he will make a statement on the matter. [44252/24]
View answerI propose to take Questions Nos. 265 and 266 together.
There is no separate taxation regime specifically for Exchange Traded Funds (ETFs). How returns on investments in ETFs are taxed will depend on the domicile and nature of the ETF.
Within the Taxes Consolidation Act 1997, there is a domestic fund regime which applies to all Irish domiciled funds, while the offshore funds regime applies to funds domiciled outside of Ireland.
It is not possible to segregate the tax paid in respect of investments in ETFs from that paid in relation to other funds. This means that the data requested is not available.
The rates of tax applicable to Irish investors’ income or gains arising in respect of investments in the different types of ETF are set out below:
|
Domicile and nature of ETF |
Rate of Tax |
|
An Irish domiciled ETF |
41% for individuals 25% for corporates 60% where the ETF is a Personal Portfolio Investment Undertaking USC and PRSI do not apply |
|
An ETF that is domiciled in the EU, EEA or an OECD member state which is equivalent to an Irish domiciled ETF. |
41% for individuals 25% for corporates 60% where the ETF is a Personal Portfolio Investment Undertaking USC and PRSI do not apply |
|
An ETF that is domiciled in the EU, EEA or an OECD member state which is not equivalent to an Irish domiciled ETF |
Individual investors who receive income payments (dividends) will be subject to income tax at the standard (20%) or higher rate (40%) as appropriate, and PRSI and USC may apply; CGT at 40% will apply to gains. Corporate investors who receive income will be taxed at 12.5% or 25%, depending on their facts and circumstances, and at an effective rate of 33% on gains. |
|
An ETF that is not domiciled in the EU, EEA or an OECD member state and which is a Distributing Fund (broadly, a fund that distributes its profits to unitholders from year to year) |
Individual investors who receive income payments (dividends) will be subject to income tax at the standard (20%) or higher rate (40%) as appropriate, and USC and PRSI may apply; CGT at 33% will apply on gains. Corporate investors will be taxable at 25% on income and 40% on gains. |
|
An ETF that is not domiciled in the EU, EEA or an OECD member state and which is not a Distributing Fund |
Income payments (dividends) and gains will be subject to income tax at the standard (20%) or higher rate (40%) as appropriate for individuals. USC and PRSI may also apply. 25% on income and gains for corporates |
Where the units are in an Irish domiciled ETF and are not held in a clearing system, the ETF must operate the tax as outlined above. In all other cases, the Irish investor must account for any tax arising under the self-assessment system.
Further information on the taxation of ETFs is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/27-01a-03.pdf
It should also be noted that on 22 October 2024, I published the Report of the Funds Sector 2030 (Review). The Review Team has developed a set of recommendations, including recommendations specifically related to ETFs. The Report of the Review is available at: www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/
268. Deputy Carol Nolan asked the Minister for Finance the number of civil servants, by grade, in his Department who were on a career break in 2023 and 2024; the number of those who in 2023 and 2024 were on a career break of five years or more; and if he will make a statement on the matter. [44302/24]
View answerI can advise the Deputy that my Department adheres to the provisions of the Department of Public Expenditure, National Development Plan Delivery and Reform Circular 4/2013, which sets out the parameters of the Career Break Scheme.
The number of civil servants in my Department who were on a career break in 2023 and 2024 are listed in Table A below, by Grade:
Table A
|
Summary Grade |
PO |
AP |
AO |
HEO |
EO |
CO |
Total |
|
2024 |
1 |
4 |
9 |
1 |
2 |
1 |
18 |
|
2023 |
1 |
3 |
12 |
0 |
0 |
2 |
18 |
The number of staff in my Department on a career break of more than five years in 2023 and 2024 are listed in Table B below by grade:
Table B
|
Grade |
Staff on Career Break over Five Years 2023 |
Staff on Career Break over Five Years 2024 |
|
PO |
|
1 |
|
CO |
|
1 |
269. Deputy Robert Troy asked the Minister for Finance the number of companies who availed of KEEP each year since its introduction, in tabular form. [44358/24]
View answerSection 128F of the Taxes Consolidation Act (“TCA”) 1997 provides for the Key Employee Engagement Programme ("KEEP”), which came into effect on 1 January 2018. The aim of the incentive is to support SMEs in Ireland in competing with larger enterprises to recruit and retain key employees, by way of a targeted share option programme. Where the provisions of section 128F TCA 1997 are met, an exemption from income tax, USC and PRSI applies to a qualifying employee on any gain realised on the exercise of a qualifying share option.
Section 128F imposes an obligation on every qualifying company to file a return with Revenue for any year in which it grants an option to an employee, or any year in which an option is exercised, transferred, or released. This return is known as the KEEP1 and it must be filed on or before 31 March in the year following the grant, exercise, transfer or release.
The table below represents the number of companies who filed a KEEP1 return for each year since the introduction of the KEEP scheme. Due to the fact that, as noted above, a company is obliged to file a return for each year in which it grants an option to an employee, and each year in which an option is exercised, transferred, or released, the same company may be included in one or more tax years presented in the table below.
|
Year |
No. of Companies |
|
2018 |
10 |
|
2019 |
35 |
|
2020 |
30 |
|
2021 |
43 |
|
2022 |
40 |
This data represents a point in time position based on the information available to Revenue as of 24 October 2024 . It should be noted that these figures may be subject to review and accordingly may be revised at a later date.
270. Deputy Robert Troy asked the Minister for Finance the cost of the section 23 allowance in each of the years 2007 and 2008, in tabular form [44359/24]
View answerI am advised by Revenue that the costs of the Section 23 allowance (‘Rented Residential Relief' ) in 2007 and 2008 are set out in the Cost of Tax Expenditures publication, which is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx
The figures are as follows: €133.6 million in 2007 and €74.7 million in 2008.
271. Deputy Carol Nolan asked the Minister for Finance if he is satisfied that the provisions of the Department of Public Expenditure, National Development Plan Delivery and Reform Circular 4/2013 are being properly implemented by his Department; if he is satisfied that civil servants whose career breaks are coming to an end are being notified of appropriate vacancies; if he is concerned by instances where civil servants are having their career breaks extended unnecessarily where the Department has appropriate vacancies to fill; and if he will make a statement on the matter. [44375/24]
View answerI wish advise the Deputy that my Department adheres to the provisions of the Department of Public Expenditure, National Development Plan Delivery and Reform Circular 4/2013 when granting approval, and or extension of career breaks to staff.
The Career Break Scheme allows staff flexibility in managing their professional and personal lives and are granted to staff in line with the provisions of the Scheme.
My Department includes scheduled returnees from Career Breaks in our workforce planning processes. Staff are granted extensions to career breaks in exceptional circumstances, as provided for in the Circular. This has not impacted on its ability to fill any vacancies
272. Deputy Verona Murphy asked the Minister for Finance what assistance is available to persons experiencing difficulties acquiring life insurance following recovery from a serious illness; and if he will make a statement on the matter. [44438/24]
View answerFirstly, I wish to assure the Deputy that I am aware of the issue of access to certain insurance services for individuals who have recovered from a serious illness. This is a very sensitive matter for many in our community and one that my Department monitors closely.
Officials in my Department engage regularly with Insurance Ireland – the official industry body – on a range of consumer issues, including the question raised by the Deputy. It has stated that insurers are obliged to assess the risk involved as part of any application for insurance, which will be specific to the individual applicant, and that the availability of cover depends on a number of factors. If higher risk is identified as a result of this assessment, Insurance Ireland has advised that the policy will be adjusted accordingly, and that cover may be declined if the applicant is judged to pose a risk beyond the insurer’s threshold.
In addition, Insurance Ireland published a Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors, which came into force on 6 December 2023. Under the Code, insurers will disregard a cancer diagnosis where treatment ended more than 7 years prior to application (or more than 5 years if the applicant was under 18 at the time of diagnosis). The Code will apply to mortgage cover applications of up to €500,000 for a principal private residence.
Separately, as the Deputy may be aware, under existing legislation (Section 126 of the Consumer Credit Act 1995), lenders are permitted to provide a mortgage in situations where a borrower may be unable to obtain life insurance, or where such insurance is unduly costly compared to that payable by borrowers generally. For individuals, including those living with certain medical conditions, and who may experience difficulties acquiring mortgage protection insurance when securing a home loan, this is an important provision to be aware of.
It may interest the Deputy to know that in order to assist clients who have had difficulty acquiring life cover due to a pre-existing illness, Brokers Ireland has published a register containing contact details of Brokers who have experience in advising on life cover in this area. This is available at: brokersireland.ie/life-cover-pre-existing-illnesses/
Additionally, Insurance Ireland operates a free information service for those customers who have queries, complaints or difficulties in relation to obtaining insurance cover, which can be contacted at feedack@insuranceireland.eu.
273. Deputy Niamh Smyth asked the Minister for Finance to review correspondence in relation to VRT (details supplied); and if he will make a statement on the matter. [44494/24]
View answerAs the Deputy will be aware, all motor vehicles in the State must be registered within 30 days of their date of entry at which point Vehicle Registration Tax (VRT) is charged. Passenger vehicles with more than ten seats are designated as EU Category M2. As such, they fall into the definition of a Category C vehicle, under Section 130 of the Finance Act 1992 (as amended). Under Section 132 of the Act, Category C vehicles are charged VRT at a flat rate of €200.
However, I am advised by Revenue that the vehicle concerned, a 9-seat passenger vehicle of EU Category M1, falls into the definition of a Category A vehicle, under Section 130 of the Finance Act 1992 (as amended). As set out in Section 132 of the Act, the VRT charge for a Category A vehicle is made up of two components, the CO2 Charge, and the NOx Charge.
The CO2 Charge is calculated as a percentage of the Open Market Selling Price (OMSP) of the vehicle, which varies depending on the level of carbon dioxide emissions. In this case, the applicable rate is 35%. The OMSP of the vehicle, as determined by Revenue in accordance with Section 133 of the Act, is €16,986, resulting in a CO2 Charge of €5,945.
The NOx Charge is calculated according to the nitrous oxide emissions of the vehicle. In this case, the NOx Charge is €410. Revenue have confirmed that the total VRT charge for the vehicle concerned is €6,355.
In the event that the person does not agree with the Revenue’s decision, they have the right to appeal. The current VRT appeals procedure is provided for in sections 145 and 146 of the Finance Act 2001 as amended by the Finance (Tax Appeals) Act 2015 and provides that an appeal can be submitted within two months of the date of the vehicle’s registration. Further information on the VRT appeals process is available on the Revenue website at www.revenue.ie/en/vrt/appeals/index.aspx.
274. Deputy Bernard J. Durkan asked the Minister for Finance if a Revenue certificate for the estate of a person (details supplied) will be issued as soon as possible; and if he will make a statement on the matter. [44534/24]
View answerI am advised by Revenue that, while there is no record of the correspondence referenced in the details supplied having been received by Revenue in March 2024, the certificate for the individual’s estate was issued on 29 October 2024 following a request received on 24 October 2024 from the solicitor acting.
Revenue have further advised that should the executor or their solicitor have any further queries, they can contact Revenue’s National Capital Acquisitions Unit (CAT) Unit by phone at 01 738 3673, Monday to Friday between 9:30 a.m. and 1:30 p.m. or by post to the CAT Unit at 9/15 Upper O’Connell Street, Dublin 1, D01 YT32.
275. Deputy Patricia Ryan asked the Minister for Finance the measures, if any, being taken by the Government to end insurance companies’ discriminatory time limit cap on holiday insurance for the over-70s; and if he will make a statement on the matter. [44570/24]
View answerAs the Minister for Finance overseeing the legal framework governing financial services regulation, including the insurance sector, I must emphasise that the provision of insurance cover, particularly in the area of travel insurance, is primarily a commercial matter determined by insurers. Accordingly, the EU Solvency II Directive dictates that neither the Government nor the Central Bank can mandate insurers to extend coverage beyond the terms specified in the policy.
Nonetheless, officials in my Department engage regularly with Insurance Ireland – the official industry body – on a range of consumer issues, including the question raised by the Deputy. They have been informed that there is no standard approach to travel insurance and that conditions can vary between providers. Accordingly, the availability of cover can depend on a number of factors including the age and the health of the person insured, the activities undertaken while on holiday, and the frequency of travel for annual policies.
Insurers will assess the risk of any application and take all information into account as it pertains to an individual applicant, and will make a decision based on their own risk appetite, as well as the range of factors previously noted. If higher risk is identified as a result of this assessment, Insurance Ireland has advised that the policy will be adjusted accordingly, and cover may be declined if that applicant poses a risk beyond the insurer’s threshold.
With this in mind, it may interest the Deputy to know that Brokers Ireland has access to a wide range of providers and products, and can offer advice for customers in sourcing cover. Brokers Ireland can be contacted at 01-661-3067 or at insurancequeries@brokersireland.ie. Additionally, Insurance Ireland operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. This can be accessed by ringing 01-676-1820 or emailing freedback@insuranceireland.eu.
In addition, consumers who feel they have been treated unfairly by any financial service provider, including an insurer, can make a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. Investigations by the FSPO are free of charge to the complainant.
276. Deputy Mattie McGrath asked the Minister for Finance if he is aware of fuel merchants in Northern Ireland selling fossil fuels in the Republic of Ireland at a price which fuel merchants in the Republic are unable to compete against, which is putting many fuel merchants out of business because the tariffs and taxes imposed in the Republic are much higher than those in Northern Ireland; and if he will make a statement on the matter. [44582/24]
View answerIreland’s tax law provides for the application of excise duty, in the form of Solid Fuel Carbon Tax (SFCT) to the first supply of coal and peat in the State. Current SFCT rates are available on the Revenue website at: www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/solid-fuel-carbon-tax/rate-of-tax.aspx. Solid fuel supplies also attract VAT at a rate of 13.5%.
Aside from SFCT and VAT, several other determinants affect solid fuel prices, including global market dynamics, labour costs, exchange rates, as well as pricing practices which may include additional charges to cover transport and distribution. These multifactorial impacts are apparent in recent price trends for coal. Global supply shortages at certain times pushed prices upwards and while SFCT rates increased annually, average prices did not always directly follow the same trajectory. SEAI data indicates that average retail prices in the State for low-smoke coal increased steadily from early 2021, reaching a peak of over €37 for a 40 kg bag in January 2023, and then declined to an average price in October this year of €33.05. The table below provides a breakdown of this average retail price.
Price component Amount (% of retail price)
|
Pre-tax |
|
|
€23.22 |
(70%) |
|
SFCT @ €147.49/tonne |
€5.90 |
(18%) |
|
|
|
VAT @ 13.5% |
€3.93 |
(12%) |
|
|
|
Total Tax (SFCT + VAT) |
|
|
€9.83 |
(30%) |
|
Retail price |
|
|
€33.05 |
(100%) |
Northern Ireland’s (NI) lower VAT rate and the absence of a carbon tax contribute to solid fuels prices being generally cheaper there than in the State. In addition, there are different restrictions in NI on the sale of some solid fuels, which can be significantly cheaper than those fuels which meet the State’s environmental standards. This further contributes to price differentials which can incentivise the sourcing of solid fuel from NI.
It is important to note that SFCT is not an import duty and only applies when a first supply has been made in the State. This means that individuals may travel to NI, purchase solid fuels and bring such fuels into the State for their own use, and no SFCT liability arises. However, NI suppliers making supplies directly to consumers in the State are liable to SFCT and must register with Revenue. I am advised by Revenue that of the 143 suppliers currently registered for SFCT, approximately 5 per cent are based in NI.
I am further advised by Revenue that it is conscious of cross-border price differentials and the risk of SFCT evasion, and over the last two years has carried out significantly increased numbers of SFCT compliance interventions, ranging from profile interviews, pay and file reminders etc., through to audits and investigations. To date in 2024, approximately 140 SFCT compliance interventions have been completed resulting in yield of over one million euro. In addition, Revenue has enforced SFCT debt, of over half a million euro, by sheriff/solicitor referral and by notice of attachment.
I am aware that concerns have previously been raised that cheap, smoky coal from NI, that does not comply with the State’s environmental standards, is being placed on the market here. While Revenue cannot impose any obstacles to the free movement of solid fuels from NI, the Air Pollution Act 1987 (Solid Fuels) Regulations 2022 give Local Authorities significant powers under this environmental law to enforce legal provisions aimed at preventing the marketing, distribution, sale and use of products which do not meet the standards that apply within the State. Notwithstanding that the regulation of solid fuel environmental standards is a matter for Local Authorities, I am advised by Revenue that it is keenly aware of the benefit that inter-agency co-operation can bring to the effective implementation of the range of State laws applicable to the solid fuel sector. In this regard, Revenue staff have participated in joint operations with Local Authorities on solid fuel matters and remains committed to supporting further positive collaboration with Local Authorities and other State agencies.
277. Deputy Michael McGrath asked the Minister for Finance if the exemption from income tax, capital gains tax and capital acquisitions tax on payments made to the women impacted by the failures in the CervicalCheck national screening programme, announced in Budget 2025, will also apply to payments to the family of persons deceased where awards were made by the court relating to CervicalCheck; and if he will make a statement on the matter. [44606/24]
View answerThe proposed exemption in respect of CervicalCheck payments is provided for under section 30 of Finance Bill 2024, as initiated. Subject to the enactment of the Bill, this section provides an exemption from Income Tax, Capital Gains Tax and Capital Acquisitions Tax on certain payments made to women who have been impacted by the failures in the CervicalCheck national screening programme.
The payments that come within scope of the Income Tax and the Capital Gains Tax exemptions are those made under-
(1) the CervicalCheck non-disclosure ex-gratia Scheme,
(2) the CervicalCheck Tribunal Act 2019,
(3) claims concluded by way of settlement, and
(4) court order.
Section 82(1) of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 already provides for an exemption from Capital Acquisitions Tax (CAT) for certain receipts, including the receipt of compensation and damages, which would apply to the CervicalCheck payments made under items (2) – (4) above. The Finance Bill 2024 amendment to section 82(1) of the CATCA 2003 provides that payments made under item (1) above will also be exempt from CAT.
Where the impacted woman was deceased when the payments were made, the exemption applies in respect of any payments made directly to her dependant(s). (Dependants includes spouse, civil partner, parent, grandparent, step-parent, child, grandchild, step-child, brother, sister, half-brother or half-sister of the deceased).
In addition, future and historic income and gains accruing to the impacted women from the investment and/or reinvestment of CervicalCheck payments received by them will also be exempt from Income Tax, Capital Gains Tax, Life Assurance Exit Tax, Investment Undertaking Tax and Deposit Interest Retention Tax.
278. Deputy John Lahart asked the Minister for Finance to clarify the tax implications for both parents and married children in situations where the parents financially assist with home extensions or improvements on the children’s primary residence, including any relevant thresholds or exemptions under current tax legislation; and if he will make a statement on the matter. [44611/24]
View answerI am advised by Revenue that where parents provide financial assistance to their children, including financial assistance to fund an extension or home improvements to the child’s primary residence, such financial assistance may come within the scope of Capital Acquisitions Tax (CAT).
CAT is a tax on gifts and inheritances payable by the person receiving the gift or inheritance (the beneficiary). CAT is calculated by reference to the value of the property received. A person receives a gift for CAT purposes when they receive a benefit, otherwise than on a death, and do not provide full consideration for that benefit.
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 currently three Group thresholds:
• Group A threshold (currently €400,000) applies, inter alia, where the beneficiary is a child (including an adopted child, stepchild and certain foster children) of the disponer. Parents also fall within this threshold where they take an absolute inheritance from a child.
• Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer.
• Group C threshold (currently €20,000) applies in all other cases aside from gifts and inheritances between spouses and civil partners which are fully exempt from CAT.
Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether any tax is payable on a benefit. Where a beneficiary receives gifts or inheritances that are in excess of the relevant Group threshold, CAT at a rate of 33% applies on the excess.
In addition to the Group threshold, a person may receive gifts up to a total value of €3,000 from any person in any calendar year without having to pay CAT (the “small gifts exemption”). Gifts within this limit are not taken into account in computing tax and are not included for aggregation purposes. If both parents make gifts to their child and to their child’s spouse, both the child and their spouse can avail of small gift exemptions to the value of €6,000 in the particular calendar year.
In the scenario presented, the child will take a gift from their parent(s) in respect of the financial assistance received to facilitate an extension or improvements to their primary residence. CAT will be payable by the child at a rate of 33% to the extent that their gift, when aggregated with any prior gift or inheritance received since 5 December 1991, exceeds the Group A threshold.
Depending on the circumstances, the child’s spouse may also take a gift from their parents- in-law in respect of a share of the financial assistance provided. CAT would then be payable by the child’s spouse at a rate of 33% to the extent that their gift, when aggregated with any prior gift or inheritance received since 5 December 1991, exceeds the Group C threshold.
In addition, where the financial assistance is provided in the form of an interest free or low interest loan, the value of the interest-free portion of the loan may be chargeable to CAT.
If the individuals the Deputy refers to require a more definitive reply, they can present full details of the facts of the case to Revenue through the MyEnquiries facility in myAccount or by contacting the National Capital Acquisitions Tax (CAT) Unit at 01 738 3673.
279. Deputy Brendan Griffin asked the Minister for Finance if agricultural tax relief on the investment of money in agricultural land for a period of two years following inheritance will be retained in the Finance Bill 2024; the estimated amount of additional revenue the removal of this relief would generate in a full year; if he appreciates the importance of the relief for farm families; and if he will make a statement on the matter. [44617/24]
View answerSections 100 and 101 of the Finance Bill 2024 (as initiated) provide for the introduction of a revised form of relief from Capital Acquisitions Tax (CAT) for gifts and inheritances of agricultural property where certain conditions are met.
The revised agricultural relief will be provided for in a new section 89A of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 and will apply to gifts and inheritances of agricultural property, and will replace the existing agricultural relief that is provided for in section 89 of the CATCA 2003. I will bring an amendment at Committee stage of the Finance Bill to provide that these provisions will be subject to a commencement order.
The existing agricultural relief, as provided for in section 89 of the CATCA 2003, is available in respect of gifts and inheritances of non-agricultural property such as cash where the gift or inheritance is made subject to the condition that it is invested in agricultural property within a 2-year period.
Subject to the enactment of the Finance Bill, after the commencement of these sections, a beneficiary will not be entitled to claim agricultural relief in respect of gifts and inheritances of non-agricultural property such as cash where the gift or inheritance.
Estimates provided for Budget 2025 indicated that these amendments should yield in the region of fifteen million Euro. The Department used a number of data sources and made certain assumptions to develop a model to arrive at an estimated Exchequer impact. The model incorporated variables including level of investor activity in farmland, current land price inflation and baseline inflation.
These sections are being made subject to a ministerial commencement order to allow time for further engagement and consultation with stakeholders, and ensure that there are no unintended consequences in relation to this measure, which is targeted at transfers of agricultural property from one generation of farmers to the next.
