351. Deputy James Geoghegan asked the Minister for Finance if he will review the level of principal private residence relief available in cases involving primary carers and family-related absences; if he intends to examine how the relief applies to particular cases (details supplied), where current rules do not reflect the circumstances of many families; and if he will make a statement on the matter. [62997/25]

As the Deputy is aware, Capital Gains Tax (CGT) arises in respect of chargeable gains accruing on the disposal of an asset, including residential property, at the rate of 33%. The first €1,270 of chargeable gains of an individual in any year are exempt from CGT.

Section 604 of the Taxes Consolidation Act 1997 (TCA 1997) provides relief from CGT on the disposal of one’s principal private residence (PPR). An individual may only have one PPR at any given point in time.

I am advised by Revenue that under Section 604(3) of the Taxes Consolidation Act 1997, full CGT relief will apply to an individual, if they dispose of a property that, for the entire period of ownership, was occupied by the individual as their PPR and used all the property as their home.

Where the residential property was not the individuals PPR during the whole period of ownership, only the proportion of the gain applicable to the period of occupation is exempt. The last 12 months of ownership of such a property by the individual is treated as a period of occupation for the purpose of this relief.

By way of example, if an individual both owned and occupied a residential property as their PPR for 10 years prior to disposal, no CGT will arise in respect of any chargeable gain which may accrue to that individual on foot of their disposal of the property. However, if the individual only occupied the property as their PPR for 7 of the 10 years in which they owned the property, they will pay CGT in respect of 20% of the chargeable gain which may arise, on the portion of the gain which relates to the period in which the individual did not occupy the property as their PPR. The last 12 months of ownership of a PPR is considered to be included in your period of occupation.

I am further advised by Revenue that there are specific absence types where an individual is considered to have lived in their property as their PPR but they do not apply in relation to the circumstances outlined.

As with all taxes, CGT is subject to ongoing review, which involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions from CGT. Any changes to CGT are considered as part of the annual Budget and Finance Bill process.