Department of Finance looking at wrong targets for Capital Gains Tax – Doherty
Sinn Féin Finance spokesperson Pearse Doherty TD has said the Department of Finance’s Tax Strategy Papers are looking at the wrong targets for Capital Gains Tax (CGT). Deputy Doherty said that rather than looking at taxing the family home the Department should be working on ending the CGT exemption for property funds which hold property for five years.
Deputy Doherty said:
“The Strategy Paper’s focus on ending the exemption for the family home is misplaced at a time when there is a glaring policy gap allowing property funds avoid CGT if they hold those properties for five years or more.
“I attempted to close down this exemption last year but the government refused to back down and the five year exemption remained in place in law. It must be repealed this year.
“Rather than seeking to net a few extra million from people selling their family home, the Department and the Minister would be better advised to focus in on the exemption for funds. Through an FOI request, I have established that the Department officials have serious concerns about the exemption, acknowledging that it is leading to a clogging up of the housing market.
“The Strategy Papers tell us that €13.7bn of Irish properties is held by these funds. Every cent of those assets could be CGT-free if the exemption is not abolished. These funds are massively distorting the housing and rental market and turning huge profits.”