The windfall tax rate of 80%, which was introduced under the National Asset Management Agency Act, applies to the portion of any profit or gain made on the disposal of land which is attributable to a rezoning, where both the rezoning and the disposal of land giving rise to the windfall occur after 30 October 2009. A rezoning for windfall tax purposes is defined as a change from a non-development land use — agricultural, amenity, open space or recreational use — to a development land use — residential, commercial or industrial use — or a mixture of such uses, or a change of development land use.
It is not clear from the Deputy's question whether he has a particular development in mind or when the land in question was rezoned. If no change of zoning was required, or if the land was rezoned before 30 October 2009, the windfall rate will not apply. However, the rate will apply if the land has been rezoned after that date.
There are two situations where such rezoned land may be disposed of without attracting the 80% tax rate:
1. Where the land is sold to an authority possessing compulsory purchasing powers solely because of the exercise by that authority of its compulsory purchase powers or where such an authority has given formal notice that it will exercise those powers.
2. Where the land is sold by a 75% subsidiary company of the National Asset Management Agency.
The 80% tax rate will only apply to the part of the profits or gains that is attributable to the rezoning decision. The balance of the profit or gain will continue to be taxed at the normal income tax, corporation tax or capital gains tax rates, as appropriate.