Dáil Éireann Debate, Tuesday - 21 April 2026
285. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance to outline any tax incentives that will encourage the charitable donation of land for sporting, cultural or community purposes; and if he will make a statement on the matter. [26494/26]
View answerA gift of land by an individual to a sporting, artistic, cultural or community organisation for the development of facilities may give rise to Capital Gains Tax, Stamp Duty and Capital Acquisitions Tax considerations for the parties involved – details of such considerations, and in particular tax reliefs which may be available in such circumstances, are set out below.
Capital Gains Tax
Capital Gains Tax (CGT) is chargeable on a gain arising on the disposal of an asset, including land, at the rate of 33 percent.
I am advised by Revenue that a donation of land may be exempt from CGT in certain circumstances. Section 611 of the Taxes Consolidation Act 1997 provides that no charge to CGT arises on a gift, or a sale at a price not exceeding the cost, of assets including land to the State, charities or other certain specified bodies, which includes certain artistic, cultural and community organisations, universities and local authorities, but does not extend to sporting bodies.
Stamp Duty
Stamp Duty on a gift of non-residential property such as land is chargeable at the rate of 7.5 percent of the market value of the land.
Section 82 of the Stamp Duties Consolidation Act (SDCA) 1999 provides an exemption from Stamp Duty on transfers of land for charitable purposes in the State or Northern Ireland to a body of persons established for charitable purposes only or to the trustees of a trust so established.
Section 82B SDCA 1999 provides for an exemption from Stamp Duty on a transfer of land to an “approved sports body” as defined in section 235 of the Taxes Consolidation Act 1997, where the land acquired will be used for the sole purpose of promoting athletic or amateur games or sports.
Capital Acquisitions Tax
A charge to Capital Acquisitions Tax (CAT) may arise on a gift of land, which would be payable by the person (or persons) to whom the land is transferred.
I am advised by Revenue that a charitable donation of land may be exempt from CAT in certain circumstances. Section 76(2) of the Capital Acquisitions Tax Consolidation Act 2003 provides that a gift or inheritance which is taken for public or charitable purposes is exempt from CAT if Revenue is satisfied that it has been, or will be, applied to purposes which in accordance with the laws of the State are public or charitable.
The availability of the above CGT, Stamp Duty and CAT reliefs will depend on the specific facts and circumstances of each case.
Finally, as the Deputy will appreciate, in designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind any measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
