Tax Code

Dáil Éireann Debate, Tuesday - 18 November 2014

Tuesday, 18 November 2014

Questions (171)

Seán Fleming

Question:

171. Deputy Sean Fleming asked the Minister for Finance further to Parliamentary Question No. 233 of 21 October 2014 in which the consideration relating to trees growing on the land saleable under wood continues to be regarded as income arising from a trade and not capital gains, if he will indicate whether such income is considered under his proposed change in the income averaging period from three to five years; and if he will make a statement on the matter. [44055/14]

Written answers

Minister for Finance

The taxation of clear-felling profits earned from the forestry sector was examined in the recently published Agri-tax review.

Profits or gains from the commercial occupation of woodlands are tax exempt for the purposes of income and corporation tax. Clear-felling forestry profits are subject to the upper tax exemption limits of the High Earners Restrictions rules.

One of the recommendations of the review was that the working group should examine the feasibility of extending income averaging to forestry clear-felling profits.