asked the Minister for Finance if any payments made under the farm retirement scheme are subjected to income tax.
Ceisteanna—Questions. Oral Answers. - Farm Retirement Scheme.
13.
Mr. Kenny
Payments made under the farm retirement scheme consist of (a) the full market value of the lands; (b) a bonus of 10 per cent and; (c) an annual indemnity in the case of persons of 55 to 70 years of age. The first two categories are payments of capital sums and are not chargeable to income tax.
With regard to the third category the amounts of the annual payments made under the scheme are £600 in the case of a married person and £400 in the case of a single person. As the corresponding tax-free allowances are £800 and £500 respectively it follows that, unless an individual had other income sufficient to bring his total income above his allowances he would not be liable to income tax on the annual indemnity.