Dáil Éireann Debate, Tuesday - 12 May 2026
455. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to consider introducing as a matter of priority an Index Linked Lifetime Tax-Free Threshold available to all Citizens of €600,000; and if he will make a statement on the matter. [34227/26]
View answerIn responding to this question it is being assumed that the Deputy is referring to the Capital Acquisition Tax (CAT) thresholds. As the Deputy is aware, CAT thresholds are currently aggregated on a lifetime basis under a self-assessment system, with an individual being required to submit a return reporting receipts by way of gift or inheritance at the point when their lifetime receipts exceed 80% of the relevant CAT lifetime tax-free threshold.
Policy considerations in relation to CAT Group thresholds are complex. In last year’s Tax Strategy Group papers my officials examined a number of policy options, and further considerations will be included in this year’s Tax Strategy Group papers. Ultimately the setting of CAT thresholds is a matter to be considered in the context of the annual Budget and Finance Bill cycles.
It should be noted that CAT is a tax on unearned wealth and aims to be a progressive tax tool.
The current Group threshold structure provides a degree of certainty, both in the levels of thresholds available to the public and the tax yield generated. Index-linking the thresholds could produce ambiguity as to what thresholds will be available going forward.
Finally, the Deputy should note that any further changes to the thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle.
