162. Deputy Tony McCormack asked the Tánaiste and Minister for Finance if he plans to further increase the lifetime limit for the reduced 10% CGT rate for entrepreneurs; and if he will make a statement on the matter. [39654/26]

Revised Entrepreneur Relief (RER) is provided for by section 597AA of the Taxes Consolidation Act 1997. RER provides that a reduced 10% rate of Capital Gains Tax (CGT) applies in respect of a chargeable gain or chargeable gains on a disposal or disposals of qualifying business assets by an individual on or after 1 January 2016, up to a lifetime limit.

A limit of €1 million applied to gains arising on disposals up to 31 December 2025. As announced in Budget 2026, the lifetime limit was increased to €1.5 million in respect of gains made on disposals on or after 1 January 2026.

The increase in the lifetime limit to €1.5 million in Budget 2026 had an estimated cost to the Exchequer of €31 million based on the latest Capital Gains Tax returns for 2023. Based on the same returns, an increase in the lifetime limit to €2 million was estimated to cost €54 million.

The increased lifetime limit of €1.5 million can allow scope for further growth of a business before an entrepreneur seeks to crystalise their gains by disposing of their business assets to avail of the relief. It can also act as an incentive for serial entrepreneurship by allowing future additional gains to be eligible for the relief, subject to the new higher €1.5 million lifetime limit.

As with all tax incentives, the RER is kept under review, and any amendments must have regard to impacts on Exchequer costs as well as wider CGT policy.