I move:
(1) That in this Resolution—
(a) "development land" means land of the kind described in section 4 (3) (a) (i) of the Capital Gains Tax (Amendment) Act, 1978 (No. 33 of 1978);
"shares" has the same meaning as in section 4 (8) of the Capital Gains Tax Act, 1975 (No. 20 of 1975), and
(b) references to the disposal of development land include references to the disposal of shares deriving their value or the greater part of their value directly or indirectly from that land, other than shares quoted on a stock exchange.
(2) That paragraph 11 of Schedule 4 to the Capital Gains Tax Act, 1975, shall have effect, as respects any disposal of development land made on or after the 26th day of March, 1982, and before the 26th day of July, 1982, as if—
(a) in subparagraph (2), "equal to 30 per cent. of the said payment" were substituted for "on one-half of the said payment at the rate of such tax in force at the time the payment is made",
(b) in subparagraph (3), "the amount of the payment at the rate of 30 per cent." were substituted for "an amount equal to one-half of the payment at the rate specified in section 3 (3).",
(c) in subparagraph (4), "the amount so estimated at the rate of 30 per cent." were substituted for "an amount equal to one-half of the amount so estimated at the rate specified in section 3 (3).",
(d) in subparagraph (5), "on or after the 26th day of July, 1982," were inserted after "be given", and
(e) after subparagraph (6), the following subparagraph were inserted:
"(6A) Notwithstanding the provisions of subparagraph (6), a certificate under that subparagraph in relation to a disposal shall not be issued unless an amount of capital gains tax equal to 30 per cent. of the consideration for the disposal has been paid.".
(3) It is hereby declared that it is expendient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
The principal effect of this resolution will be to tax profits on the sale of development lands at a rate of 50 per cent. I am sure that this resolution will recommend itself to all sides of the House. The previous Minister for Finance intended to tax these profits at the rate of 45 per cent. We felt it appropriate to increase that to 50 per cent. Everybody knows that there is considerable public disquiet about the profits being made on the sale of development lands or lands for development purposes and I think a tax of 50 per cent on these profits is not unreasonable.
While the full provisions of this very complicated measure can only be outlined in the Finance Act, the tax will become operative as and from today. It is a very complicated area but I think the explanation I have given covers its salient features. From 12 o'clock tonight profits made from the sale of development lands will be taxed at 50 per cent as distinct from the normal capital gains rate which is now 40 per cent in most other areas.