Vol. 451 No. 8
64 Mr. Cowen asked the Minister for Finance, in view of the announcement in the Budget confirming that land acquired compulsorily for road development would not be regarded as development land, if this provision will apply to farmers (details supplied) in County Laois; and if he will make a statement on the matter. [7434/95]
In this year's budget, I announced a measure to allow deferment of capital gains tax — CGT — for farmers disposing of farmland, including buildings, to a local authority for road-building or road-widening purposes, to the extent that the proceeds of the disposal are reinvested in acquiring replacement farmland. In the recently published 1995 Finance Bill, I have broadened this relief to include reinvestment in agricultural plant and machinery.
These new measures apply in respect of disposals taking place on or after 6 April 1995, in line with the normal practice for changes in the CGT code. I understand that the majority of the disposals referred to by the Deputy would have taken place prior to 6 April 1995 and, therefore, would not come within the scope of the new provisions.
