Written Answers Nos. 170-182
171. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance whether the current inheritance tax rules for people inheriting a family home are under review in light of rising house prices. [66106/26]
Amharc ar fhreagra172. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance whether consideration has been given to introducing measures to account for regional differences in residential property values when assessing capital acquisitions tax liabilities. [66105/26]
Amharc ar fhreagra173. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance whether an assessment has been undertaken of the potential cost to the Exchequer of reducing the Capital Acquisitions Tax rate from 33% to 20%. [66104/26]
Amharc ar fhreagra174. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance whether consideration is being given to increasing the category A capital acquisitions tax threshold in line with inflation since 2009. [66103/26]
Amharc ar fhreagraI propose to take Questions Nos. 171, 172, 173 and 174 together.
Capital 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.
The Group A threshold increased to €400,000 from €335,000. This threshold applies where the beneficiary is a child of the disponer. This includes adopted children, stepchildren and some foster children. Parents may also fall within this threshold where they take an inheritance from a child.
The Group B threshold increased to €40,000 in Budget 2025 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer. Following recent changes made to Capital Acquisitions Tax legislation, the Group B threshold also applies to persons who receive gifts and inheritances from the wider family of their foster parents, for example, from their foster siblings, uncles, aunts and grandparents.
The Group C threshold increased to €20,000 in Budget 2025 from €16,250, with this threshold applying to all other cases.
There is a significant associated cost with reducing the rate of CAT. Revenue data demonstrates that, by way of example, reducing the rate of CAT by 1% would cost approximately €30.6 million annually. Reducing the CAT rate by 13% to 20%, as outlined in the Deputies question, would therefore be estimated to cost in the region of €397.8m.
The Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for a number of exemptions wherein no charge to CAT arises in respect of certain types of gifts and inheritances if certain conditions are met. For example, section 86 CATCA 2003 provides for an exemption from CAT on the inheritance of a dwelling house.
Where a person takes an inheritance of a dwelling house, that person may be able 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 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 https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/dwelling-house/index.aspx
My officials conducted a review of Capital Acquisitions Tax last year as part of the annual Tax Strategy Group exercise and have done so again in this years Tax Strategy Group papers. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming last years and this years Budget.
The Tax Strategy group papers are 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. Following publication of the papers, the department receives correspondence from stakeholders and experts which is considered by officials.
As with all taxation matters, CAT is kept under review. As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
175. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance the position regarding retailers, vendors and event organisers refusing to accept cash for payment (details supplied) [66140/26]
Amharc ar fhreagraPublished by Government in October 2024, the National Payments Strategy (NPS) acknowledges that cash continues to play an important role as a means of payment and a store of value for many people in Ireland. The NPS also recognises the importance of protecting access to cash, and the acceptance of, cash for those who choose to use it.
At present in Ireland, a business must accept cash as legal tender when offered by a customer to settle a debt which has arisen, where it places no restrictions on the means of payment it is prepared to accept. However, where a business specifies payment must be in a form other than cash, such as through the display of ‘no cash’ signs, the customer cannot claim a legal right to pay in cash.
There are limitations to any domestic action the Government may take in legislating for stricter cash acceptance, with the ability to propose legislation for euro cash acceptance exclusively being a European Commission competency.
On 28 June 2023, the European Commission published a proposal for a Regulation on the legal tender of banknotes and coins. The Regulation aims to protect European citizens’ right to pay with euro cash by introducing a general obligation of mandatory cash acceptance across the euro area, and prohibiting the use of ‘no-cash’ or ‘card payments only’ signs.
The proposal is progressing as part of the Single Currency Package, with the European Council and European Parliament having finalised their respective positions on the Package. Trilogue negotiations between the co-legislators began in July under the Irish Presidency of the Council of the EU.
The regulation will allow for a limited number of exceptions to the general obligation of mandatory cash acceptance, such as if the refusal is made in good faith (for example, if the payee does not have the denominated change required to give the payer) or if both parties agree to use an alternative payment method.
However, the final details of the Package are subject to finalisation as part of the trilogue negotiation process.
176. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the revenue raised by amending the help-to-buy scheme to reduce the LTV ratio 85% with a maximum relief of €30,000. [66208/26]
Amharc ar fhreagraThe Help to Buy (HTB) incentive, is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
For a property to qualify for the HTB scheme, 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.
A condition of the HTB scheme is that a qualifying first-time purchaser (“FTP”) must take out a loan in an amount equal to at least 70% of the purchase value of the property.
Based on the latest available data (31 August 2026), the scheme has supported over 69,000 individuals or couples to buy or build their own home.
I am advised by Revenue that the estimated annual yield to the Exchequer from amending the loan to value ratio to a minimum of 85%, while retaining the maximum relief of €30,000, as outlined by the Deputy, would be €81 million. This estimate is based on claims approved in 2025, the latest year for which fully analysed data are available.
177. Deputy Conor Sheehan asked the Tánaiste and Minister for Finance if he is aware of the lack of retail banking branch services on the northside of Limerick city following consecutive branch closures in recent years; the impact on local communities, elderly or vulnerable residents, and small businesses across areas such as the Ennis Road, Clareview, Caherdavin, and Greystones; if his Department has engaged with the retail banks regarding restoration of physical banking or face-to-face services in the area; the steps he is taking to ensure adequate access to cash and over-the-counter financial services through alternative networks like the post office network. [66060/26]
Amharc ar fhreagraWhile the regulation of retails banks in Ireland is the responsibility of the Central Bank of Ireland (CBI), decisions relating to the business model of regulated firms are commercial matters for the Boards of these firms.
Following a comprehensive review of the Consumer Protection Code 2012, the CBI has published a revised Consumer Protection Code (the Code), which took effect on 24 March 2026. Under the Code, banks must ensure that they communicate in a clear and timely manner with customers regarding any changes to their banking services and branch closures, and in particular inform them about any alternative channels available to them to avail of banking services.
Banks must also provide affected vulnerable customers with the assistance necessary to ensure that those customers can retain full access to basic financial services, albeit in many cases at another branch location.
Furthermore, the Finance (Provision of Access to Cash Infrastructure) Act 2025 established a regime to ensure sufficient and effective access to cash infrastructure for individuals and SMEs. An Order made under Section 5 of the Act specified criteria for minimum levels of access to cash infrastructure across the State. The Order also prescribed, for each region, a minimum percentage of the population that must be within 10km of a cash service point, where cash may be deposited and withdrawn, and where there is in-person assistance available. Bank branches and Post Offices satisfy the definition of cash service point. Compliance with the criteria is monitored quarterly by the Central Bank.
In addition to the access to cash criteria, the Central Bank implemented its local deficiencies framework from 1 July 2026, allowing members of the public to notify the Bank where they consider a deficiency in access to cash infrastructure exists in their local area, even where the access to cash criteria in their region have been met.
The Central Bank will assess any formal notification from the public against its local deficiency framework, taking account of a range of matters including all cash infrastructure currently available in that area.
A mapping tool that shows the full range of access to cash infrastructure at a local level across the State is available on the CBI’s website, see www.centralbank.ie/financial-system/access-to-cash.
178. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance further to Parliamentary Question No. 289 of 8 May 2025, to provide updated information on the total number and value held in dormant authorised funds, that is authorised funds within scope that have not applied for revocation; and if he will make a statement on the matter. [66206/26]
Amharc ar fhreagraI regret that it was not possible to provide the information sought within the time available.
My officials are engaging with the Central Bank of Ireland on the matter, and I will make arrangements to provide the information to the Deputy in line with the Standing Orders of Dáil Éireann.
179. Deputy Shónagh Ní Raghallaigh asked the Tánaiste and Minister for Finance the estimated cost of increasing the income tax exemption limits for persons aged over 65 years of age to €22,000 for a single person and €44,000 for a married couple/civil partner. [66272/26]
Amharc ar fhreagraAs the Deputy will be aware, the current thresholds for the income tax age exemption are €18,000 per annum where an individual is aged 65 years or over, and €36,000 per annum for married couples and civil partners, jointly assessed to tax, where either individual is aged 65 or over. The relevant income thresholds may be increased further if the individual has a qualifying child. Additionally, 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.
The current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. The age tax credit (€245/€490 for single and married persons respectively) or the age exemption limits and marginal relief are available to persons aged 65 or over. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
With the substantial increases to tax credits introduced by the previous Government, the effective entry point to income tax has increased for all taxpayers, including those aged 65 or older. For 2026, 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 is €21,225 per annum and for a married two earning couple in receipt of the married person credit, two employee/earned income credit and the married age credit is €42,450 per annum.
Therefore, depending on their personal circumstances, it may be more beneficial for persons aged over 65 to be taxed under the normal tax system of credits and bands.
I would encourage all taxpayers to ensure that they are availing of the most beneficial tax treatment.
I am advised by Revenue that based on the information available for analysis it is not possible to provide an estimate of the first and full year cost of increasing the income tax age exemption limits from €18,000 to €22,000 for a single person and from €36,000 to €44,000 for a married couple or civil partners jointly assessed. An exercise in modelling adjustments to the age exemption limits has not been carried out and the associated methodology has not been developed that would enable Revenue to provide the information requested.
180. Deputy Shónagh Ní Raghallaigh asked the Tánaiste and Minister for Finance If he had a bilateral meeting with the Japanese Finance Minister at the most recent G20 meeting in the Unites States. [66271/26]
Amharc ar fhreagraIreland enjoys a deep and wide-ranging bilateral relationship with Japan, owing from cultural and people-to-people ties, our economic and trade relationship, and our cooperation on global affairs across an array of fora and channels including the G20 and the OECD.
I participated in the G20 Finance Ministers and Central Bank Governors Meeting in Asheville, North Carolina from August 31st - September 1st, as part of my role as President of ECOFIN during Ireland's Presidency of the Council of the EU.
While I did not have the opportunity to have a formal bilateral engagement with Japan's current Finance Minister, Ms. Satsuki Katayama, in Asheville, I was pleased to participate with her in several sessions on issues of common economic priority.
Officials in my Department enjoy a positive working relationship with the Embassy of Japan in Ireland and I look forward to continuing to support this important bilateral partnership in the future.
181. Deputy Eoghan Kenny asked the Tánaiste and Minister for Finance the amount of prize bonds prizes that are unclaimed or could not be claimed due to the person who held them being deceased, by county of residence last known, and amount, in tabular form. [66327/26]
Amharc ar fhreagraThe National Treasury Management Agency (NTMA) has informed me that, on 31 August 2026, there were 20,158 unclaimed Prize Bond prizes, with a total value of €1,430,233.66, relating to bondholders recorded as deceased on the Prize Bond Company's system of record.
The Prize Bond Company’s Bereavement Support Team operates an established procedure to engage with Next of Kin or Legal Personal Representatives of deceased bondholders to facilitate the payment of prizes relating to deceased bondholders as quickly as possible.
The NTMA have advised me that, while the Prize Bond Company compiles an aggregate figure at national level for these prizes, it does not routinely compile a county-by-county breakdown of these prizes.
182. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to consider the Ireland active budget to allow a tax credit on gym and pool memberships; and if he will make a statement on the matter. [66334/26]
Amharc ar fhreagraAs the Deputy will be aware, the Programme for Government, Securing Ireland’s Future, contains a commitment “consider measures, in conjunction with the Department of Finance, to encourage gym membership and active participation in sport and exercise.”
The tax code already provides for a number of fitness-based measures more generally i.e. the Cycle to Work Scheme and the Accelerated Capital Allowances scheme for Childcare facilities and Fitness Centres which encourages employers to develop childcare facilities and fitness centres onsite for their employees. Furthermore, the private gym sector already receives tax-based public support through a reduced rate of VAT of 9 per cent on membership fees. It is estimated that this reduced rate saves private gym operators and gym members in the order of approximately €30 million per annum.
An exemption from Income Tax and Corporation Tax applies for the income of certain bodies established for the purpose of the promotion of athletic or amateur games or sports where it can be shown to the satisfaction of Revenue that such income is applied solely for those purposes. Any income received and availing of the relief by the sports body must be used for the purpose of promoting the game or sport.
There is also a scheme of tax relief for donations to approved sports bodies for approved projects. This includes tax relief in respect of donations for capital projects such as the purchase, construction or refurbishment of a building or structure for use for sporting activities, the purchase of land to provide sporting facilities.
Officials in my Department considered potential tax measures to support gym and sports membership as part of the annual Tax Strategy Group process last year, in chapter 10 of the Income Tax, Tax Strategy Group - 25/01 paper which is available on my Department's website. After considering the matter, the introduction of an Income Tax relief on gym and sports membership was not recommended at that time.
However, taxation matters are reviewed on an annual basis as part of the budgetary process.
It is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
