Vol. 509 No. 6
302 Mr. Kirk asked the Minister for Finance if taxation changes are being considered in view of the proposals for milk quota management changes and, in particular, the proposal to phase out milk quota leasing; and if he will make a statement on the matter. [21564/99]
303 Mr. Hogan asked the Minister for Finance if milk quota will continue to be regarded as an asset for financial purposes in view of the recent changes announced by him in relation to the separation of milk quota from land; and if he will make a statement on the matter. [21617/99]
I propose to take Questions Nos. 302 and 303 together.
A milk quota is viewed as a non-wasting capital asset, subject to the capital gains tax and capital acquisitions tax codes. If expenditure on the purchase of milk quotas was allowed as a deductible expense for income tax purposes, the logical outcome would be that the proceeds from the sale of a quota should be treated as income and therefore liable for income tax. At present, the proceeds are treated as a capital receipt and are subject to capital gains tax which can give much more favourable tax treatment because of indexation relief and other reliefs.
