797. Deputy James Geoghegan asked the Tánaiste and Minister for Finance to review correspondence (details supplied); and if he will make a statement on the matter. [57483/26]

Capital Gains Tax “Roll-over relief” was abolished in Budget 2003 for disposals after 4 December 2002. Under “Roll-over relief”, CGT payable on the proceeds of a gain was deferred if the proceeds were reinvested with the result that the tax liability is not realised until the assets are eventually sold.

An issue with the relief was that chargeable gains which were deferred under roll-over relief were often never ultimately taxed. Therefore re-introducing roll-over relief would be likely to affect the yield from CGT, and could require additional revenue-raising measures.

Capital Gains Tax, as with all taxes, is kept under review by officials in my department. However, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances and the commitments set out in the Programme for Government. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.