768. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance if he is aware of difficulties faced by qualified cohabitants in accessing the capital acquisitions tax exemption (details supplied), including cases where this has delayed mortgage drawdowns; the options available to former cohabitants seeking to transfer assets following an amicable separation without having to take court proceedings; if he will consider reviewing the current provisions to ensure that former cohabitants and unmarried parents are not disadvantaged compared with married couples in similar circumstances; and if he will make a statement on the matter. [62060/26]

781. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance if he will clarify the practical operation of the capital acquisitions tax exemption for qualified cohabitants under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010; the process by which a qualified cohabitant may obtain a court order enabling a tax exempt transfer of assets in circumstances where both parties are in agreement; the reason such orders appear to be inaccessible in situations where cohabitants are not in dispute (details supplied); and will he make a statement on the matter. [62323/26]

I propose to take Questions Nos. 768 and 781 together.

For the purposes of Capital Acquisitions Tax (CAT), the relationship between the person who provides a gift or inheritance (the disponer) and the person who receives it (the beneficiary) determines the tax-free threshold (Group Threshold) below which CAT does not arise. Any prior gift or inheritance received by a person since 5 December 1991 from within the same Group Threshold is aggregated for the purposes of determining whether any CAT is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant Group Threshold, CAT at a rate of 33% applies on the excess.

There are three Group thresholds which determine the maximum amount below which a charge to CAT does not arise.

• Group A threshold (currently €400,000) applies, inter alia, where the beneficiary is a child (including an adopted child, stepchild and certain foster children) of the disponer.

• Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer.

• Group C threshold (currently €20,000) applies in all other cases.

In the case of long-term cohabitants who are not related to each other, the relevant Group Threshold is the Group C threshold, which is €20,000.

However, an exemption from CAT may be available in relation to certain gifts and inheritances between long-term cohabitants. Gifts and inheritances taken by a qualified cohabitant in accordance with a Court Order made under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 are exempt from CAT. Part 15 of that Act provides for a redress scheme whereby court orders can be obtained in certain circumstances in relation to the transfer of assets. A “qualified cohabitant” is a person who has been in a committed and loving relationship with another person for a minimum period of 5 years (or 2 years where they are parents of one or more dependent children), whose relationship has ended due to death or separation and neither of whom was married to and living with another person in 4 of the 5 years immediately prior to the end of the relationship.

These exemptions do not extend to situations where cohabitants enter into a legal agreement outside of the Courts providing for the transfer of assets. In such circumstances, the benefit of Group C threshold is available to the beneficiary, subject to previous gifts or inheritances.

Further information on the taxation of cohabiting couples has been published on the Revenue website at www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/cohabiting-couples/index.aspx

As with all taxes, CAT is subject to ongoing review. This involves the consideration and assessment of the CAT thresholds and the relevant reliefs and exemptions from CAT as part of the annual Budget and Finance Bill process, as well as consideration of CAT in the wider tax policy context.