Dáil Éireann Debate, Thursday - 29 November 2018
57. Deputy Michael McGrath asked the Minister for Finance if analysis has been undertaken by his Department or by the Revenue Commissioners on the possible impact the United Kingdom leaving the European Union will have on the legislation governing the tax code and the application of the tax code; the potential legislative changes that will be required to account for this impact; and if he will make a statement on the matter. [49879/18]
View answer58. Deputy Michael McGrath asked the Minister for Finance his plans to bring forward legislation that will add the United Kingdom of Great Britain and Northern Ireland to parts of the legislative tax code that refer to member states, member states of the European Union or EEA states, in particular with regard to the Stamp Duties Consolidation Act 1999 and the Tax Consolidation Act 1997; and if he will make a statement on the matter. [49880/18]
View answer73. Deputy Michael McGrath asked the Minister for Finance the way in which section 80(10)(a) of the Stamp Duty Consolidation Act 1999 will operate once the UK leaves the EU and the EEA on 29 March 2019; if companies in Northern Ireland will no longer qualify for the provisions in section 80 of the Stamp Duty Consolidation Act 1999 after this date; and if he will make a statement on the matter. [49971/18]
View answer74. Deputy Michael McGrath asked the Minister for Finance the way in which section 615(2)(b) of the Tax Consolidation Act 1997 will operate for the purposes of capital gains tax relief once the UK leaves the EU and the EEA on 29 March 2019; if companies in Northern Ireland will no longer qualify for capital gains tax relief; and if he will make a statement on the matter. [49972/18]
View answer75. Deputy Michael McGrath asked the Minister for Finance the way in which agricultural relief from capital gains tax and stamp duty will apply for farms or agricultural land in cases in which a portion is in the territory of Northern Ireland and the other portion is in the territory of the Republic of Ireland; and if he will make a statement on the matter. [49973/18]
View answerI propose to take Questions Nos. 57, 58 and 73 to 75, inclusive, together.
The Department of Finance has been assessing and preparing for the impact of Brexit since before the referendum on 23 June 2016. This work is being carried out within the whole-of-Government structures established by the Department of Foreign Affairs. It includes scoping legislative requirements and preparing draft legislation for all Brexit scenarios. As part of this work, the Department of Finance is working closely with the Revenue Commissioners on the implications of Brexit for the tax code to ensure that any necessary legislative arrangements are put in place. This work will be progressed as part of an overall Government legislative programme for managing Brexit.
In addition to the wider Governmental work, the Department undertakes a rolling analysis focusing on the key Brexit related policy issues, which includes taxation. The implications of Brexit on the tax code was analysed in two papers as part of the Tax Strategy Group (TSG) in 2017 and 2018. TSG 17-09 – BREXIT Taxation Issues and TSG 18-08 – Brexit.
On 25 November 2018 the European Council endorsed the Agreement on the withdrawal of the UK from the EU, and approved the Political Declaration setting out the framework for the future relationship. The Irish Government has been clear that it seeks the closest possible relationship between the EU and the UK, post Brexit, to ensure that the impact on our trade and economy is as minimal as possible.
As part of the Withdrawal Agreement, a transition period has been agreed within the context of the UK’s withdrawal from the EU, during which the EU and the UK will negotiate an agreement on their future relationship. During the transition period, the whole of the EU acquis, will apply to the UK which will preserve the status quo during that period, thus avoiding any gaps or cliff edge effects between the UK leaving the EU and the intervening period before a future relationship agreement enters into force. It is therefore not appropriate to comment or speculate on the future EU-UK relationship and its implications for taxation or indeed any specific tax reliefs.
