Dáil Éireann Debate, Tuesday - 7 May 2013
126. Deputy Patrick O'Donovan asked the Minister for Finance if persons who availed of the farm retirement scheme are able to avail of the exemption from capital gains tax in the event of the disposal of all or part of their farm, even after leaving the scheme; if it is still the case in relation to a person (details supplied); and if he will make a statement on the matter. [21170/13]
View answerI am advised by the Revenue Commissioners that before a definitive answer could be given to the Deputy’s question it would be necessary to have further relevant information relating to the case. It would for example be necessary to know the effect of leaving the retirement scheme in question relative to the terms of the scheme rules; how long the farmer was within the scheme; what use was made of the land during the period the farmer was within the scheme and what use is being made of the land since leaving the scheme. In the absence of this information, it is only possible to reply in general terms. Section 598 of the Taxes Consolidation Act 1997 provides that land which has been owned and used by an individual for the purposes of farming for a period of 10 years, ending with the transfer of an interest in that land for the purposes of complying with the relevant Early Retirement From Farming Scheme, qualifies for retirement relief where an individual disposes of that land. In order to qualify for the relief, the individual must be aged 55 years or over.
Currently, full relief from capital gains tax applies where the aggregate consideration for disposals outside the family does not exceed €750,000 and the farmer making the disposal satisfies the conditions governing the tax relief outlined above. Marginal relief may apply where the consideration does not greatly exceed that amount. In the case of disposals by individuals aged 66 or over on or after 1 January 2014, the relief will be reduced to €500,000.
If you wish to provide me with the information required and the name and address of the taxpayer in question, I will request the Revenue Commissioners to provide a definitive reply.
