Dáil Éireann Debate, Thursday - 19 June 2025
241. Deputy Pearse Doherty asked the Minister for Finance to provide in tabular form the total amount of capital gains tax paid by credit servicing firms and special purpose vehicles holding specified mortgages each year since 2010, in tabular form; and if he will make a statement on the matter. [33348/25]
Amharc ar fhreagraFinance Act 2016 made certain changes to the taxation of qualifying companies, within the meaning of section 110 Taxes Consolidation Act 1997 (“TCA 1997”). The changes, which included the introduction of a new subsection (5A) in section 110, relate to the taxation of profits derived from the business of qualifying companies that involves the holding, managing or both the holding and managing of specified mortgages, including any activities which are ancillary to that business, after 6 September 2016. Specified mortgages refer to any financial assets that derive their value, or the greater part of their value, directly or indirectly from land in the State.
Where a qualifying company transfers legal title only of a specified mortgage to a credit servicing firm but retains the beneficial interest in the specified mortgage, the credit servicing firm will not be subject to capital gains tax in respect of any gains related to the specified mortgage. The credit servicing firm will be subject to corporation tax in respect of any income it earns for managing or servicing the specified mortgage on behalf of the qualifying company.
A qualifying company is not subject to capital gains tax as all profits and gains arising in the course of its business are chargeable to corporation tax. If a qualifying company holds the beneficial interest in a specified mortgage, any profits or gains arising will be subject to the provisions of section 110(5A) TCA 1997 as set out in a response to Parliamentary Question No 24776/25.
I am advised by Revenue that it does not have information available from corporation tax returns to isolate the amount of gains related to specified mortgages from other taxable profits of qualifying companies.
