asked the Minister for Finance the rate at which the unearned gains of land speculators are taxed.
Ceisteanna—Questions. Oral Answers. - Land Gains Tax.
52.
It is not clear what the Deputy has in mind in referring to the "unearned gains" of land speculators. If the speculators are engaged in the trade of dealing in or developing land, then the profits of the trade would be regarded as earned income for tax purposes in the same way as the profits from any other trade so carried on.
It may be that the Deputy is thinking of a person who purchased land, with an eye to the future, and then in a few years' time sells it for an enhanced sum. In such a case, the profit derived would not be chargeable to tax at all unless there was some indication that the seller was in some way engaged in the business of dealing in land. Tax is chargeable on the profits or gains arising from the business of dealing in or developing land as follows:
In the case of an individual:
Income tax is charged at the standard rate of 35 per cent on the profits arising after deducting admissible expenses and the allowances and reliefs to which he is entitled. In addition to income tax, sur-tax is charged at rates of 15 per cent, 30 per cent and 45 per cent depending upon the level of total income.
In the case of an incorporated body:
Income tax is charged at the standard rate of 35 per cent and, in addition corporation profits tax is charged at the rate of 7½ per cent on the first £2,500 of profits, and 23 per cent on the balance. However, corporation profits tax paid is allowed as a deduction in computing profits for income tax purposes.