Vol. 494 No. 4
227 Mr. Penrose asked the Minister for Agriculture and Food if he has raised with the European Commission the 50 per cent rule requirement under Council Regulation 2079/92 which deals with the early retirement scheme from farming with a view to having these modified; if so, the outcome of these discussions; and if he will make a statement on the matter. [18726/98]
Following a review of the operation of the early retirement from farming scheme, I wrote to Commissioner Fischler earlier this year seeking agreement to certain improvements to the scheme, including the deletion of the restrictions on off-farm income. Commissioner Fischler has responded positively to my request and a provision in this regard is contained in the new draft regulation on support for Rural Development currently being considered in the appropriate EU fora.
228 Mr. Penrose asked the Minister for Agriculture and Food the plans, if any, he has to hold discussions with the Department of Finance to seek the elimination of the anomaly which discriminates against, and unfairly penalises, interfamily leases under the farm retirement scheme; and if he will make a statement on the matter. [18727/98]
People aged 55 years or over who lease out their land are allowed the first £4,000 of leasing income exempt from income tax where the lease is for a period of five to six years — this figure rises to £6,000 for leases of seven years or more. However, in order to avail of this concession the lessor and the lessee must not be closely related i.e. the lease must be at "arms length".
This issue has been discussed with the Department of Finance and the Revenue Commissioners. I understand that there is a concern that removing or relaxing this condition could leave the scheme open to possible tax avoidance evasion.
