Noel Grealish
Ceist:165. Deputy Noel Grealish asked the Minister for Transport the number of cars travelling 10,000km or less per annum; and if he will make a statement on the matter. [28053/24]
Amharc ar fhreagraDepartmental Data
Ceisteanna (165)
Freagraí scríofa
My Department does not hold the data on kilometres travelled by individual vehicles. The Central Statistics Office publish statistics on total vehicle-kilometres from odometer readings (data.cso.ie/table/THA10). They do this by combining the number of vehicles in the fleet obtained from the National Vehicle and Driver File (NVDF) held by my Department and odometer readings from two separate administrative sources; the National Car Testing (NCT) Service and the Commercial Vehicle Roadworthiness Testing Service. These sources are linked to the NVDF by vehicle registration number. The methodology used to estimate vehicle kilometres travelled from successive odometer readings is detailed here: www.cso.ie/en/methods/transport/roadtrafficvolumes/methodology/. The CSO do not publish the required breakdown but may be able to supply it if requested.
Departmental Contracts
Ceisteanna (166)
Catherine Murphy
Ceist:166. Deputy Catherine Murphy asked the Minister for Transport the number of contracts (details supplied) that have been awarded to carry out services on behalf of his Department in 2023 and to-date in 2024; the nature of services that were provided to his Department; and the amount paid by his Department to this company for such works, in tabular form. [28078/24]
Amharc ar fhreagraFreagraí scríofa
The Department has not awarded any contracts to Forvis Mazers to carry out services on behalf of his Department during 2023 and to date in 2024.
Driver Test
Ceisteanna (167)
Michael Ring
Ceist:167. Deputy Michael Ring asked the Minister for Transport the number of people that have passed the area knowledge module of the SPSV driver entry test for the past five years, by county, in tabular form; and if he will make a statement on the matter. [28153/24]
Amharc ar fhreagraFreagraí scríofa
The regulation of the small public service vehicle (SPSV) industry, including the collection and publication of statistics relating to the SPSV driver entry test, is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Consolidated Taxi Regulation Acts 2013 and 2016. I am not involved in the day-to-day operations of the SPSV industry.
Accordingly, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a response within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51.
Transport Infrastructure Ireland
Ceisteanna (168)
Mairéad Farrell
Ceist:168. Deputy Mairéad Farrell asked the Minister for Transport if local authorities must request approval from TII when tendering for maintenance and improvement works on the national road network; if a cut in funding has occurred year on year; and if he will make a statement on the matter. [28155/24]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and maintenance of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Infrastructure Guidelines and the necessary statutory approvals.
TII was first established as the National Roads Authority (NRA) under Part III of the Roads Act 1993. Under Section 16 it was established and under Section 17 the then NRA was assigned responsibility for the planning and supervision of works for the construction or maintenance of national roads as are assigned to it under that Act. Section 16 came into force on 23rd day of December 1993.
A major priority in the National Development Plan, in line with the Department’s investment hierarchy, is to maintain the quality and safety of the existing National Road network. The NDP foresees an exchequer allocation of circa €2.9 billion in capital exchequer funding for the Protection and Renewal of existing National Roads over the 10-year period to 2030. This has been allocated fairly evenly across the decade.
The Government has earmarked €5.1bn for capital spending on new national roads projects from 2021 to 2030 as part of the NDP. This funding will enable improved regional accessibility across the country as well as compact growth, which are key National Strategic Outcomes. The funding will provide for the development of numerous national road projects, including the completion of projects which are already at construction stage and those close to it, as well as the development of a number of others. As the greater portion of this funding becomes available in the second half of the decade, this means that there is a constraint on the funding available for new projects this year – however many national road projects in the NDP continue to be progressed in 2024.
Approximately €411m in capital exchequer funding was allocated to local authorities through TII for the purposes of national roads in 2024. This includes funding for new roads projects, as well as for the protection and renewal of the existing network, such as pavement renewal. The allocations announced by TII earlier this year are an indication of the progress that TII believes is possible on each national roads project during the year. However, if the progression of any national roads project, programme or operation is impeded or priorities change, the funding will be redistributed by TII, in accordance with its statutory remit, to other national roads or greenways projects, programmes, or operations. No funding has been withdrawn by my Department from TII this year.
Bus Services
Ceisteanna (169)
Matt Carthy
Ceist:169. Deputy Matt Carthy asked the Minister for Transport if he will consider extending local link services to Smithborough and, in particular, to provide services to Monaghan town; and if he will make a statement on the matter. [28156/24]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including TFI Local Link and the Connecting Ireland Rural Mobility Plan.
In light of the NTA's responsibilities for the rollout of services under the Connecting Ireland, including in County Monaghan, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
A referred reply was forwarded to the Deputy under Standing Order 51.
Road Network
Ceisteanna (170)
Matt Carthy
Ceist:170. Deputy Matt Carthy asked the Minister for Transport the funding provided to each local authority for the purpose of local road resurfacing and maintenance in each year 2020-2024 inclusive, in tabular form; and if he will make a statement on the matter. [28339/24]
Amharc ar fhreagraFreagraí scríofa
The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Councils' own resources supplemented by State road grants. The initial selection and prioritisation of works to be funded is a matter for the Council.
Arising from the arrangements in place in relation to Local Property Tax receipts, the four Dublin Councils are largely self-funding for works on regional and local roads since 2015 and my Department no longer provides grants to these Councils under the main regional and local road grant categories.
Within the budget available to my Department for regional and local road grants, grant funding for maintenance purposes is allocated on the basis of grant programmes and not on the basis of the category of road. The allocation of funding across specific roads or across categories is a matter for each local authority, having regard to the funding available to it from local and central sources as well as its particular priorities.
The main regional and local road grant programmes are focussed on specific policy objectives i.e. surface sealing to protect the road surface from water damage, road strengthening based pavement condition rating to lengthen the life of roads and a Discretionary Grant which allows for a specified range of activities including winter maintenance. These three grant programmes account for most of the grant funding and are allocated taking into account the length of the road network and traffic factors in a particular local authority area. Apart from a requirement that 15% of the road strengthening grant is spent on regional roads, the allocation of funding to different categories of road is a matter for decision by each local authority.
Details of the regional and local road grant allocations and payments to local authorities are outlined in the regional and local road allocations and payments booklets which are available on the Oireachtas Digital Library.
Rail Network
Ceisteanna (171)
Éamon Ó Cuív
Ceist:171. Deputy Éamon Ó Cuív asked the Minister for Transport the progress made in providing two platforms and a passing loop at Oranmore railway station; whether it is intended to provide a loop that will allow two trains pass each other without one or both of them being stationary; and if he will make a statement on the matter. [28341/24]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the upgrade of and passing loop at Oranmore train station.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
Fiscal Policy
Ceisteanna (172)
Joan Collins
Ceist:172. Deputy Joan Collins asked the Minister for Finance if he shares the concern expressed in a pre-Budget 2025 submission by an organisation (details supplied) on levels of debt distress in low-income countries; if he will work at international levels and UN fora to follow the recommendations the organisation proposes, including debt cancellation, debt treatment alternatives, an end to IMF surcharges and an end to damaging conditionalities; and if he will make a statement on the matter. [28330/24]
Amharc ar fhreagraFreagraí scríofa
The successive shocks which have hit the global economy in recent years continue to be felt. While there are positive developments, such as a possible inflection point reached in the global interest rate cycle as markets expect rates to begin falling, many debtor countries continue to experience challenges which is concerning.
Ireland is a strong supporter of the work of multilateral organisations, including the United Nations, the International Monetary Fund and the World Bank. Ireland is also a member of the Paris Club, a group of creditor countries which seeks to find coordinated solutions to debt sustainability challenges in borrowing countries.
The Dóchas pre-budget submission includes a range of recommendations which my Department will consider as Ireland continues to work in close coordination with other countries in seeking to address the challenges posed by debt distress in low-income countries.
Departmental Funding
Ceisteanna (173)
Brendan Griffin
Ceist:173. Deputy Brendan Griffin asked the Minister for Finance the amount of State funding that was invested in a facility (details supplied); if the funding invested was protected by any proviso regarding future sale of the asset; if the State has recovered its investment or any part of its investment following the sale of the facility in 2021; and if he will make a statement on the matter. [28335/24]
Amharc ar fhreagraFreagraí scríofa
The NTMA has confirmed to me that the Ireland Strategic Investment Fund (ISIF) is not, and has never been, an investor in Troy Studios in Limerick.
Tax Code
Ceisteanna (174, 178)
Josepha Madigan
Ceist:174. Deputy Josepha Madigan asked the Minister for Finance the steps the Government is taking to reform the taxation of personal investments for individuals, and if he will consider introducing a scheme similar to the ISA in the UK or the TFSA in Canada, allowing individuals to invest a small amount each year tax-free to support savings for future financial goals like house deposits and retirement income; and if he will make a statement on the matter. [27882/24]
Amharc ar fhreagra
Richard Bruton
Ceist:178. Deputy Richard Bruton asked the Minister for Finance if he is aware of schemes in the UK and Canada to allow individuals to accumulate small sums each year into personal funds which grow tax-free; if the tax strategy group has assessed changes in certain rules on such funds in Ireland; and if he will make a statement on the matter. [27924/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 174 and 178 together.
On 6 April 2023, the Minister for Finance published the Terms of Reference for a Review of the Funds Sector in Ireland ("Funds Sector 2030: A Framework for Open, Resilient & Developing Markets"). As per the Terms of Reference, and following on from the recommendation of the Commission on Taxation and Welfare, the Funds Review was tasked with examining, inter alia, “the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible; and to do so with a net revenue-raising or neutral mandate”.
The majority of responses to the Funds Review public consultation addressed the taxation of investment funds (including ETFs) and life assurance policies, with some proposing the introduction of a tax-advantaged, ISA-type, scheme. The Funds Review Team is considering a range of options in order to meet the objective of simplification and harmonisation. The Funds Review report is currently being finalised and I look forward to considering its findings. It would not be appropriate to speculate on the outcome of the review in advance of its completion.
The Tax Strategy Group (TSG) is in place since the early 1990s and is chaired by the Department of Finance with membership comprising senior officials and political advisers from a number of Civil Service Departments and Offices. Papers on various options for tax policy changes are prepared annually by Department of Finance officials.
The TSG is not a decision making body and the papers produced by the Department are simply a list of options and issues to be considered in the Budgetary process. The 2024 TSG will be held shortly.
Tax Reliefs
Ceisteanna (175)
Michael Ring
Ceist:175. Deputy Michael Ring asked the Minister for Finance if a relief can be extended (details supplied); and if he will make a statement on the matter. [27912/24]
Amharc ar fhreagraFreagraí scríofa
Where a person receives a gift or inheritance of property, they may have to pay Capital Acquisitions Tax (CAT) on the value of the gift or inheritance received.
For CAT purposes, the relationship between the disponer (the person who provides the gift or inheritance) and the beneficiary determines the maximum amount, known as the Group threshold, below which CAT does not arise. 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 person receives gifts or inheritances that are in excess of the relevant Group threshold, CAT at a rate of 33% applies on the excess amount. There are three Group thresholds:
• the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer;
• the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;
• the Group C threshold (currently €16,250) applies in all other cases.
I am advised by Revenue that the Capital Acquisitions Tax Consolidation Act 2003 (CATCA 2003) makes provision for a number of exemptions and reliefs from CAT, which may be available on a gift or inheritance of a family home.
Firstly, a gift or an inheritance received from a spouse or civil partner is always exempt from CAT.
Secondly, section 86 CATCA 2003 provides for an exemption for the inheritance of a dwelling house. This “dwelling house exemption” is not contingent on the nature of the relationship between the disponer and the beneficiary. To qualify for the exemption, the inherited dwelling house must have been the deceased person’s only or main residence at the date of his or her death. This requirement is relaxed in situations where the deceased person had to leave the house before the date of death because of ill health; for example, to live in a nursing home. In addition, the beneficiary of the inheritance must not have a beneficial interest in any other dwelling house at the date of the inheritance and at the valuation date. Finally, the beneficiary must have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the dwelling house for 6 years after the date of the inheritance.
A gift of a dwelling house may come within the scope of this exemption if it is made to a dependent relative. A “dependent relative” is defined as a relative who is permanently and totally incapacitated due to mental or physical infirmity from maintaining himself or herself or who is aged 65 years or over at the date of the gift.
Detailed guidance on the dwelling house exemption is available on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf .
Finally, a gift or inheritance taken by a qualified cohabitant in accordance with a Court Order made under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 is exempt from CAT. Part 15 of that Act provides for a redress scheme whereby court orders can be obtained in certain circumstances in relation to the transfer of property. A “qualified cohabitant” is a person who has been in a committed and loving relationship with another person for a minimum period of 5 years (or 2 years where they are parents of one or more dependent children), whose relationship has ended due to death or separation and neither of whom was married to and living with another person in 4 of the 5 years immediately prior to the end of the relationship.
The options available for making changes to CAT exemptions must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
Tax Exemptions
Ceisteanna (176)
Michael Ring
Ceist:176. Deputy Michael Ring asked the Minister for Finance if he will increase an exemption (details supplied); and if he will make a statement on the matter. [27913/24]
Amharc ar fhreagraFreagraí scríofa
Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances that is payable by the beneficiary of the gift or inheritance on the value of the property received.
The relationship between the person giving a gift or inheritance and the beneficiary determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
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 tax is payable on a benefit.
Where a person receives a gift or inheritance and the value of the property received exceeds the relevant Group threshold, CAT at a rate of 33% applies on the excess.
There are three Group thresholds:
• the Group A threshold (currently €335,000) applies where the beneficiary is a child of the person giving the gift or inheritance;
• the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance;
• the Group C threshold (currently €16,250) applies in all other cases.
In addition to the above, a person may receive gifts up to the value of €3,000 from any person in any calendar year without having to pay CAT. This is generally referred to as the small gifts exemption.
Gifts within this limit are not taken into account in computing tax and are not included for future aggregation purposes.
The effect of this is that a person can take a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT. In addition, where the value of a gift from a person exceeds €3,000, only the excess is taken into account for calculating CAT.
The gift exemption applies only to gifts and not to inheritances.
I am advised by Revenue that it is not currently possible to cost an increase in the Small Gift Exemption as it is not possible to forecast how many would avail or benefit from the increased level of the exemption, and to what amount.
The options available for setting CAT exemptions must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
Question Heading for question(s) 177
Ceisteanna (177)
Michael Ring
Ceist:177. Deputy Michael Ring asked the Minister for Finance if he will amend threshold groups (details supplied); and if he will make a statement on the matter. [27914/24]
Amharc ar fhreagraFreagraí scríofa
Where a person receives a gift or inheritance of property, they may have to pay Capital Acquisitions Tax (CAT) on the value of the gift or inheritance received, after allowing for the application of the relevant Group threshold.
For CAT purposes, the relationship between the disponer (the person who provides the gift or inheritance) and the beneficiary determines the maximum amount, known as the Group threshold, below which CAT does not arise. 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 person receives gifts or inheritances that are in excess of the relevant Group threshold, CAT at a rate of 33% applies on the excess amount. There are three Group thresholds:
• the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer;
• the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;
• the Group C threshold (currently €16,250) applies in all other cases.
The Capital Acquisitions Tax Consolidation Act 2003 (CATCA 2003) provides the statutory basis for CAT.
Section 4 CATCA 2003 provides for CAT to be charged on gifts and section 9 CATCA 2003 provides for CAT to be charged on inheritances.
Section 50 CATCA 2003 provides that the amount of CAT payable is to be determined in accordance with the rules in Schedule 2 of CATCA 2003. Schedule 2 CATCA 2003 provides for the three Group thresholds”, below which a charge to CAT does not arise.
The Deputy should be aware that there would be a significant cost in making substantial changes to the CAT thresholds. Recent Revenue estimates put the full cost of increasing the CAT Group A threshold from its current €335,000 to €400,000, for example, at approximately €52 million. The estimated cost of increasing the Group B threshold from its current €32,500 to €50,000, €100,000 and €335,000 would be €53 million, €137 million and €248 million retrospectively. While the cost of increasing the Group C threshold from €16,250 to €19,000 is estimated to be €3 million.
The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
Question No. 178 answered with Question No. 174.
Departmental Policies
Ceisteanna (179)
Cathal Crowe
Ceist:179. Deputy Cathal Crowe asked the Minister for Finance the main policy achievements of his Department since 27 June 2020; and if he will make a statement on the matter. [27961/24]
Amharc ar fhreagraFreagraí scríofa
Since the formation of the Government on 27 June 2020, the Department of Finance has delivered a number of policy achievements which include:
Budget 2021, 2022, 2023 and 2024
The unforeseen challenges of Ukraine, the ongoing recovery from the pandemic and the continuing fallout from Brexit were addressed from a position of strength with record levels of employment and a budget surplus.
Cost of living challenges
By responding swiftly and decisively to the cost of living challenges, government supports have helped to mitigate the impact of inflationary pressures on both businesses and households. Budget 2023 was a ‘Cost of Living Budget’ focused on mitigating inflationary pressures. Budget 2024 provided €2.7 billion in once-off cost of living measures for 2024, which built upon some €12 billion in direct relief made available to households and businesses since the beginning of 2022.
Covid-19 related support schemes
The range of unprecedented proactive and pro-cyclical interventions to support the economy during the pandemic, all of which were made possible by the prudent management of the public finances in the pre-Covid years.
International Tax Reform
The agreement reached by Ireland with approximately 140 other jurisdictions through the OECD Inclusive Framework in 2021 represents an important step towards resolving the issues brought about by the digitalisation of the economy and is intended to provide certainty for multinational enterprises whose business models are so important for the Irish economy. There are two pillars to this agreement. The EU Minimum Tax Directive was implemented through the Finance (No.2) Bill 2023, making good on Ireland’s commitment to deliver Pillar Two of the OECD agreement. Ireland welcomed the publication of the Multilateral Convention (MLC) by the OECD, demonstrating the substantial progress made on all aspects of Pillar One. I look forward to that work being finalised shortly and the opening of the MLC for signature in due course.
Retail Banking Review
The review of the Retail Banking sector was completed in 2022 and 2023 saw the move to work on implementation of its 34 recommendations, which are now Government policy.
A key issue identified by the Retail Banking Review was access to cash, both the ability to withdraw and deposit cash, and a number of recommendations address this. There is a dedicated team in place working on this issue and work on the drafting of legislation is well underway in close collaboration with the Office of Parliamentary Counsel.
Another related issue was a recommendation for the Department to lead on the development of a National Payments Strategy (NPS) that will take account of the changing landscape and determine how best to adapt to it as per the terms of reference published in June 2023. The NPS will set out a roadmap for the future evolution of the entire payments system, taking account of developments in digital payments, cash usage and how future changes should be made to the legislative criteria relating to Access to Cash. The NPS will also take account of the EU legislative landscape, including existing proposals on instant payments, payment services, legal tender and the Digital Euro. One of the aims of the NPS is to ensure that the Irish payment system is resilient and it can be trusted both by its retail participants and consumers alike. The final strategy will be published in late summer 2024.
Funds Sector Review
A review of the Funds Sector commenced in 2023. “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets” is a wide ranging review of an important part of the financial services sector, both in Ireland and globally. A public consultation has been conducted and a progress update, published on 21 December 2023, highlighted the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030, as identified in the responses. The review is due to report in Summer 2024.
State’s Shareholding in the Banking Sector
The Department manages the State’s remaining investments in the banking sector. In relation to the shareholdings in the three domestic banks, the State exited its shareholding in Bank of Ireland during 2022 recovering almost €6.7bn in cash from its €4.7bn investment in and support for the bank. In the case of AIB, share sales resumed at the beginning of 2022 for the first time since the IPO in 2017 and since then the State’s shareholding in AIB has reduced from c. 71.1% to c. 25.5% currently, a total of c. €16.1bn has been recovered from the State’s investment in AIB so far. The shareholding in PTSB has reduced from 75% to 57.4% currently.
Insurance Reform Agenda
A key focus has been the implementation of the pro-consumer Action Plan for Insurance Reform, which set out actions across several departmental policy areas. The vast majority of the actions are now complete, including all 13 principle actions, and all those assigned to the Department of Finance.
Climate Agenda
My Department is committed to contributing to the Government’s Climate agenda. A dedicated Climate Unit was established in 2021. The unit manages the Department’s overall engagement on climate at national and international level, including inputting to the development of the Climate Action Plan.
The Department’s 2023 annual report will be published shortly and available on the gov.ie website. Further detail on the strategic framework that underpins the policy achievements is available in the Department of Finance Statement of Strategy 2023-2025 on the gov.ie site.
Insurance Industry
Ceisteanna (180)
Thomas Pringle
Ceist:180. Deputy Thomas Pringle asked the Minister for Finance if there are any processes in place to ensure that insurance providers of long-term illness cover have a robust policy on fitness to work, assessing in an open and transparent way the extent to which a particular illness impairs or restricts a person’s capacity to work; and if he will make a statement on the matter. [28010/24]
Amharc ar fhreagraFreagraí scríofa
It is important to clarify that neither I nor the Central Bank of Ireland have the authority to dictate insurance pricing or product offerings, as these are commercial decisions made by individual companies, governed by the EU Single Market framework for insurance (the Solvency II Directive). More specifically relating to your question, insurers assess Income Protection claims based on medical evidence from customers’ doctors. This assessment may also include an independent medical examination with a qualified specialist to determine if the customer meets the policy definition of being unable to work.
Insurers employ various support measures to ensure a robust and transparent assessment of a person’s capacity to work. These measures can include detailed forms, Consumer Charters, specific nominated claims assessors, health claims advisors, and nursing teams, which provide complementary support. However, the specifics of these measures can vary slightly between different insurers.
More widely, insurance reform is a key priority for the Government, demonstrated by the significant progress made under the Action Plan for Insurance Reform. The most recent Action Plan Implementation Report, published in February 2024, shows that the majority of actions are either delivered or initiated. Oversight by a Cabinet Committee Sub-Group on Insurance Reform, chaired by the Tánaiste, underscores the importance the Government places on this initiative and I will continue to work with colleagues to ensure consumers feel the benefit of the reform agenda.
Tax Code
Ceisteanna (181)
Steven Matthews
Ceist:181. Deputy Steven Matthews asked the Minister for Finance the position regarding the exemption limit to deposit interest retention tax; the last time a formal review of this limit took place; and if he will make a statement on the matter. [28038/24]
Amharc ar fhreagraFreagraí scríofa
Interest may be received without paying DIRT in certain circumstances. For those aged 65 or over, a declaration form must be completed stating that the individual, their spouse or civil partner, are 65 years of age or over when making the declaration and that their total income for the year, including the interest, must be below the annual exemption limit.
As the Deputy is aware, the age exemption applies for any year of assessment where an individual is aged 65 years or over and his or her total income does not exceed €18,000 per annum. Where an individual is a married person or civil partner and is jointly assessed to tax, the age exemption will apply where either individual is aged 65 or over and where the couple’s total income does not exceed €36,000 per annum. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
It is important to note that marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40 per cent on all income above the exemption limit to a ceiling of twice the exemption limit. The system of marginal relief ensures that in cases where an individual's or couple’s income rises above the exemption threshold that their net income will not decline, as the 40 per cent income tax rate only applies to the proportion of income above the threshold. Once the income exceeds twice the exemption limit marginal relief is no longer available and the individual pays tax under the normal tax system.
It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is entitled to the benefit of the more favourable treatment between the use of marginal relief or the normal tax system of credits and bands.
I have no plans to increase the age exemption limits. However, it should be noted that in circumstances where the individual or couple no longer benefits from the age exemption or marginal relief they will benefit from the increases to the main personal tax credits in recent Budgets.
The increases to the main personal tax credits in Budget 2024 (€100 increase to the single, employee and earned income credits and a €200 increase to the credit for married couples/civil partnerships) means that the effective entry point to income tax has increased for all taxpayers, including those aged over 65. From 2024, the effective entry point to income tax for an individual in receipt of the single person credit, employee/earned income credit and the age credit has increased by €1,000 per annum from €18,975 to €19,975 per annum.
It is important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. Persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Social welfare income such as the State Contributory Pension and State Non-Contributory Pension are excluded from the calculation when determining if an individual’s income has exceeded the €60,000 income threshold. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
The Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to income tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, at the following link -www.gov.ie/en/publication/7fbeb-report-of-the-commission/ .
Finally, as part of the Personal Tax Review published on Budget Day 2023, my Department set out further analysis of the recommendations of the Commission on Taxation and Welfare, including in respect of the age exemption limits. The Report is available at the following link -www.gov.ie/pdf/?file=https://assets.gov.ie/273335/96f70eb1-64e1-4f02-9096-e36f306a048b.pdf#page=null .
Housing Schemes
Ceisteanna (182)
Robert Troy
Ceist:182. Deputy Robert Troy asked the Minister for Finance if he will urgently re-examine an application for the help-to-buy scheme on behalf of a person (details supplied). [28061/24]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that the situation has not changed in regards to the Help to Buy application in question no. 227 of 16 April 2024.
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 (TCA 1997) outlines the definitions and conditions that apply to the scheme.
For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Section 477C (1) TCA 1997 requires the purchase value of the qualifying residence to not exceed €500,000. In the case of a self-build residence, the purchase value is defined as the approved valuation, being ‘the valuation of the residence that, at the time the qualifying loan is entered into, is approved by the qualifying lender as being the valuation of the residence’.
I am advised by Revenue that the property concerned is ineligible for the HTB Scheme as the official documentation from the mortgage lender, at the time the mortgage was entered into, valued the property in excess of €500,000. Notwithstanding that an updated valuation has now been provided, Revenue advises that it does not meet the statutory definition of approved valuations, per Section 477C (1) TCA 1997, as it was not approved by the lender at the time the mortgage was entered into.
Further information in relation the conditions and operation of the Help to Buy Scheme are contained in Revenue’s Tax and Duty Manual Part 15-01-46, www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-46.pdf.
Revenue Commissioners
Ceisteanna (183)
Catherine Murphy
Ceist:183. Deputy Catherine Murphy asked the Minister for Finance the new equipment received by the Revenue Commissioners that were funded by The European Anti-Fraud Office under the Hercule III Programme in 2022, 2023 and to-date in 2024, in tabular form. [28086/24]
Amharc ar fhreagraFreagraí scríofa
At the outset, it should be noted that the HERCULE III was superseded by the European Union Anti-Fraud Programme (EUAF) in 2021. The EUAF will run from 2021-2027.
I am advised by Revenue that x-ray scanners and maritime cutters, which are an integral component of its response framework targeting fraud, illicit trade, smuggling and organised crime, are just one component of a suite of resources, detection equipment and technologies deployed by them, in addition to the application of the comprehensive legal framework as set out in relevant tax and customs legislation. Intelligence development, electronic risk analysis tools, x-ray scan technology and maritime cutters are deployed as part of Revenue’s overall response.
Revenue’s suite of x-ray scanners, range from handheld scanning devices to scan small packages, baggage scanners for the scanning of passenger luggage and parcels and mobile scanners to scan vehicles and containers. Revenue currently operates three mobile container x-ray scanners, one x-ray backscatter van and both mobile and fixed baggage scanners which are based at the main ports of entry.
In addition, I am informed that Revenue has recently completed a tender for a second mobile baggage scanner van which will be based in Dublin but deployed in various locations nationwide as operational requirements dictate. This van is due for delivery in mid-2024 and has been purchased with financial assistance from the European Commission’s Customs Control Equipment Instrument (CCEI). Revenue keeps its operational requirements and arrangements regarding the deployment and use of detection technology and resources, including mobile x-ray scanners, under continuous review, having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs.
Revenue’s Maritime Unit currently has two cutters (patrol vessels) in active service, with one of those vessels approaching the end of its service life. An application for funding under the EUAF towards the partial cost of a replacement Cutter was submitted in 2022 and was successful. A Request for Tender for a replacement Cutter was published in the Official Journal of the EU in October 2022. Tenders were received in February 2023 and following a comprehensive evaluation process a contract for the delivery of a Revenue Customs Cutter was signed on 3 August 2023 with AuxNaval in Spain.
The contracted cost of the replacement Cutter is €8.75 million excluding VAT and is being funded by the Exchequer and the grant from the EUAF. The new Cutter is currently under construction and is expected to come into service in 2025. Included in the Request for Tender was an option for a second vessel, which could be a replacement for Revenue’s second vessel when it is approaching the end of its service life.
The table below outlines equipment purchased by Revenue in which funding from OLAF (the European Anti-Fraud Office) was received:
|
Description of Equipment |
Funding programme |
Total amount of funding received |
Payment dates |
Funding as a Percentage of Total cost |
|
Customs Cutter |
EUAF* (Project ID 101059367) |
€1,840,000 |
First: 13 June 2022 |
€920K paid to date. Another €920K will be paid by EUAF on delivery of the vessel. Total EUAF funding will be approx. 21% of total cost. |
|
Mobile X-Ray Container Scanner |
HERCULE III (Proposal ID 101013743) |
€1,081,683 |
First: 21 December 2020
Final: 23 May 2023 |
80% |
|
Mobile X-Ray Container Scanner |
HERCULE III (Proposal ID 878495) |
€1,272,000 |
First: 18 December 2019
Final: 29 November 2021 |
80% |
|
Mobile Backscatter X-Ray Scan Van |
HERCULE III (Proposal ID 786221) |
€515,057 |
First: 21 December 2017
Final: 23 October 2019 |
50% |
Universal Social Charge
Ceisteanna (184)
Jennifer Murnane O'Connor
Ceist:184. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the estimated full-year cost of reducing the first rate of USC from 0.5% to 0.25%, reducing the second rate of USC from 2% to 1% and increasing the threshold to the third rate of USC from €25,760 to €33,000; and if he will make a statement on the matter. [28094/24]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that the estimated cost to the Exchequer on a first and full year basis for the proposal outlined by the Deputy would be of the order of €685 million and €785 million respectively.
A reduced USC rate of 2% currently applies for those aged 70 years or older with income of €60,000 or less and for those who hold a full medical card with income of €60,000 or less. For consistency, the estimated costings also include a decrease from 2% to 1% in this rate.
Tax Code
Ceisteanna (185)
Thomas Pringle
Ceist:185. Deputy Thomas Pringle asked the Minister for Finance if he will consider adding persons in circumstances (details supplied) to inheritance group A; if not if he will create an exemption under an inheritance tax band, for family who play the role of carer to family members with no children or family of their own; and if he will make a statement on the matter. [28169/24]
Amharc ar fhreagraFreagraí scríofa
For Capital Acquisitions Tax (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.
The Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer. The Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant such as a grandchild of the disponer. The Group C threshold (currently €16,250) applies in all other cases.
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 person receives gifts or inheritances that are in excess of the relevant tax-free threshold, CAT at a rate of 33% applies on the excess benefit.
Accordingly, where a person receives a gift or inheritance from their aunt or uncle, the Group B threshold of €32,500 will apply. CAT will be payable by the person at a rate of 33% to the extent that the benefit received, when aggregated with any prior gift or inheritance received since 5 December 1991, exceeds this threshold.
However, where an aunt or uncle leaves a dwelling house to their niece or nephew, the niece or nephew may be in a position to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the disponer’s principal private residence at the date of death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in in a nursing home. The beneficiary must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. In addition, the beneficiary must not have a beneficial interest in any other residential property. Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf .
The options available for making changes to CAT thresholds and exemptions must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.