Dáil Éireann Debate, Tuesday - 9 June 2026
525. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance if his Department has examined, as part of the Tax Strategy Group process or otherwise, the case for reducing the current 33% rate of Capital Acquisitions Tax, which has remained unchanged since December 2012; the estimated full-year cost of a reduction in the rate to 30% and to 25% respectively;; and if he will make a statement on the matter. [41608/26]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. The group thresholds were most recently increased in Budget 2025 as follows:
My officials examined CAT as part of last year's annual Tax Strategy Group exercise and it will be further reviewed in this years papers. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming last year's Budget. They were published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision-making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process.
The estimated cost of applying a 1% decrease on the tax rate for capital acquisitions tax is €28.2m. A reduction of the rate to 30% is estimated to cost around €84.5m while a reduction of the rate to 25% is estimated to cost around €225.6m. Further estimates can be found in the Revenue Ready Reckoner available on the Revenue website at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
Finally, the Deputy should note that any further changes to Capital Acquisition Tax, the 33% rate and the related reliefs and exemptions 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 Capital Acquisitions Tax is kept under review annually by my officials throughout the Finance Bill cycle.
