Dáil Éireann Debate, Tuesday - 6 May 2014
167. Deputy Denis Naughten asked the Minister for Finance further to Parliamentary Question No. 254 of 25 March 2014, if progress has been made regarding the forced transfer of single farm payment entitlements; and if he will make a statement on the matter. [20261/14]
View answerOfficials in my Department have been considering, with officials from the Department Agriculture, Food and the Marine, the tax implications for certain farmers arising from changes in the new EU Common Agriculture Policy and the scope for mitigating the tax effects. I have also been in contact with the Minister for Agriculture, Food and the Marine in these matters.
There are potential tax implications arising from the disposal of single farm payment entitlements, mainly capital gains tax (CGT) and VAT. I have no discretion under EU law to provide for a VAT exemption on the disposal of the payment entitlement assets. Having considered the matter, however, I was prepared to provide for an exemption from CGT on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an "active" farmer by 15 May 2014. I made an announcement to this effect last week.
I propose to include appropriate provisions to give effect to the CGT exemption in Finance Bill 2014 which will be published shortly after Budget 2015 in the Autumn. While the CGT due on any chargeable gains arising from the disposal of farm payment entitlements made by 15 May would have to be paid in the normal course by 15 December 2014, the Revenue Commissioners have indicated that they will not require such payments to be made pending the passing of the Finance Bill and the coming into law of the relevant CGT amendments to be included in that Bill.
