Is the Galway Tent next? – Brophy

• Return of SSIAs and massive Capital Gains tax cut to fuel another property bubble

• Developers and investors with a capital gain of €1 million will be €80,000 better off under FF plan

• Illogical proposals given that housing supply is increasing and prices are stabilising

Fine Gael TD Colm Brophy has expressed concern that with only a week to go in General Election 2020, Fianna Fáil has not yet set out the rationale and logic for its massive Capital Gains Tax cut that will result in huge dividends for property developers and investors.

Fianna Fáil’s manifesto commits to a €267 million tax cut in Capital Gains Tax.

The party says that “reducing the CGT rate will help to incentivise investment and free up more money to be put into new companies, creating more jobs and broadening our tax base.”

Commenting today, the Dublin South West TD said:

“What Fianna Fáil do not mention is that a significant portion of Capital Gains Tax derives from property transactions – between a quarter and a third in recent years.

“Receipts from Capital Gains Tax have been increasing year on year without any stimulus. Over the last decade, it has increased three-fold, and in 2019 exceeded €1 billion. What benefit is there from cutting it? There is an entrepreneurial relief for Capital Gains Tax which is targeted at entrepreneurs, so that doesn’t stack up for this cut.

“On top of this we have a new SSIA scheme which only reminds us that Fianna Fáil have learnt the lessons of the crash – they seem to be insisting on repeating them instead. What will be next, the return of the Galway Tent?

Deputy Brophy concluded:

“All these sweeteners for the property sector make no sense when the supply of housing is increasing and prices are stabilising.

Fine Gael has a sensible proposal to help first time buyers – allowing people to claim up to €30,000 of their tax back for their deposit. This is the extension of a proven scheme that will help encourage the supply of new builds not add to general house price inflation.”