Tax Code
Dail Éireann — 2026-05-06
============================================================

Marian Harkin (IND), Sligo-Leitrim

I thank the Deputy for bringing this issue to the House. The rate that capital gains tax is charged at has varied upwards and downwards. The truth is that the existence of capital gains tax can help maintain a balance between the rate of taxation of capital assets and the higher rate of income tax. It can also prevent tax planning behaviour. There are a number of targeted reliefs from capital gains tax, including principal private residence relief as well as retirement relief and revised entrepreneur relief. It is often the case that significant exemptions often require a higher rate to generate an appropriate yield.
As the Deputy is aware, the programme for Government commits to maintaining a broad tax base to guard against the need for a countercyclical fiscal policy in the event of a downturn and to prepare for future budgetary challenges related to population ageing. Capital gains tax is part of a system to ensure a wide taxation base reducing the burden on income tax that is tax on labour. I assure the Deputy, as with all taxes, that capital gains tax is subject to ongoing review which involves the consideration and assessment of the rate of capital gains and the relevant reliefs and exemptions from capital gains tax. Capital gains tax policy and legislation are reviewed as part of the annual budget and Finance Bill process, and is part of wider tax policy considerations. That same consideration will take place this year. It will be kept under ongoing review most particularly in light of the upcoming budget. That is an opportunity for the Deputy to make his case.

---

Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted.

Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-05-06/debate/main
Retrieved: 2026-08-14T04:54:54+00:00
Sitting date: 2026-05-06