33% family home sales tax is 'insane' says Healy-Rae
Kerry Independent TD Michael Healy-Rae has described proposals to hike capital gains tax to 33 per cent as "insane".
Fears are mounting that a plan to impose a capital gains tax of 33 per cent on family homes may be pushed through by the government.
As work begins in earnest on next year's budget senior officials at the Department of Finance have raised the prospect of abolishing the relief on family homes from capital gains tax when they are sold.
At present, taxpayers pay capital gains tax at 33 per cent on the increase in value of any property or assets between the time they buy and sell it. However, the family home is exempt from the tax.
Deputy Healy-Rae said he would be strongly opposed to any such change.
"At this time of year in particular it is a well known fact that the Department of Finance are inclined to fly a number of different kites testing the public mood pre budget by leaking or releasing details of ideas that they may have for the budget," he said.
"The suggestion to make people pay 33 per cent tax on the sale of their own home is completely insane," he said.
"It's insane for the following reasons. Firstly these people if they bought their family home they paid stamp duty on it and paid a mortgage all their lives to pay it off. Then perhaps they want to down size and release that home to other young couples who really need it and now the suggestion is that they would have to give a third of it back in tax to the department of finance," he said.
"To even consider such a ridiculous mean and stupid suggestion would be outrageous. This kite wont fly as it is totally unacceptable to the majority of politician's and most importantly of all to the general public," concluded Deputy Healy-Rae.