I am grateful to have the opportunity to speak on this issue. I know I am not the only TD who has been contacted by parents who want to pass a property from one generation to the next. At its heart, this is not about tax breaks for the wealthy; it is about fairness, stability and the ability of ordinary families to plan their futures without being overwhelmed by financial pressures that are, in many cases, disproportionate and unnecessary.
One family contacted me recently and their case illustrates the problem clearly. They own a second property and they want to gift it to their adult child, so that it will become their home. Before they can make the transfer, they face a capital gains tax bill which in their case is somewhere between €70,000 and €75,000. They simply do not have that kind of money. On top of that, they remain liable for tax on the property even when no rent is being collected. This is not an isolated case. This is a hardworking family who have never asked for anything from the State. They work, they pay their taxes, they cover college fees and they contribute to their community. They are not opposed to capital gains tax in principle but a 33% rate on a property they are not selling is excessive by any measure. The reality is stark. Their child is now considering emigrating, leaving behind a good job, because they do not want their parents burdened with a massive tax bill. That is the human cost of the current system.
Across the country, families who have worked for decades to build security are finding that transferring a property to their children triggers a tax burden that simply does not reflect the reality of their circumstances. These are not investment properties or speculative assets. In many cases, the property is the only significant asset a family has and the intention is not for profit but for continuity, stability and giving the next generation a foothold in the housing market. We already have models that balance support with safeguards. The vacant property refurbishment grant, for example, requires owners to live or rent out the property for a minimum of five years. That protects the integrity of the scheme while still delivering meaningful help to families and communities. A similar safeguard can and should apply.
It is entirely reasonable to require that the property becomes the child's principal private residence for, say, ten years. Such a condition would ensure the measure supports genuine family transfers rather than speculative behaviour. This approach would strike the right balance. It would ease the financial pressure on families who simply want to keep a home in the family while ensuring the tax system remains fair, transparent and resistant to abuse. It would help younger generations put down roots at a time when housing affordability is one of the greatest challenges they face and, crucially, it would allow parents to pass on property without the fear of being hit with a large capital gains tax bill on a gain they never actually receive because the property is not being sold; it is being gifted.
Parents should not have to pay capital gains tax when transferring a second property to a son or daughter who will use it as their family home. That is the principle at stake and it is one we should be willing to stand over.