Terence Flanagan (Dublin North East, Independent)
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221. To ask the Minister for Finance his plans to reduce capital gains tax (details supplied); and if he will make a statement on the matter. [9220/15]

Michael Noonan (Limerick City, Fine Gael)
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The rate of capital gains tax (CGT) is 33% and has been increased four times since 2008 when it stood at 20%. These rate increases were necessary to protect the yield from CGT in the context of the required rebalancing of the public finances over that time. In the circumstances, increases in the taxation of capital were considered preferable from the point of view of the impact on the economy as compared to an increase in employment taxes such as income tax. The changes to income tax and to the Universal Social Charge which I announced in Budget 2015 and provided for in Finance act 2014 will benefit taxpayers (particularly those on low and middle incomes) and businesses, generally.

As regards the details supplied with the question, CGT does not apply to the revenue from a business but to any chargeable gain arising from its sale or disposal after deducting the costs associated with its acquisition and enhancement (which costs may be adjusted to take account of inflation). Allowable losses may also be taken into consideration and the first €1,270 of the net chargeable gains in any tax year is exempt from CGT. In addition, relief from CGT may apply where an individual, who is at least 55 years of age, disposes of the whole or part of his or her business assets.

In common with all taxes, CGT is subject to on-going review, including the rate of tax and all reliefs and exemptions are carefully considered. However, decisions concerning changes to taxes, generally, are taken in the course of the Budgetary and Finance Bill process and I will bear the Deputy's concerns in mind in that context.