Eamon Gilmore
Ceist:174 Mr. Gilmore asked the Minister for the Environment and Local Government the additional land which has been released for residential development, as a result of the decision to reduce capital gains tax to 20%. [30208/00]
Written Answers. - Residential Development.
The Finance (No. 2) Act, 1998, provided that disposals of land with planning permission for residential development would be subject to a reduced rate of capital gains tax of 20% up until 5 April 2002 with a new 60% rate to apply for disposals from 6 April 2002 onwards in order to incentivise the early release of land suitable for housing development. This provision was subsequently amended in the Finance Act, 1999, to provide that all land zoned for residential development would be liable to a 20% capital gains tax rate when disposed of before 5 April 2002. The 1999 Act also provided for a general reduction in capital gains tax rates from 40% to 20%.
Disaggregated information on land transactions for residential development since the reduced rate of capital gains tax came into effect in 1998 is not available in my Department. There are, however, a range of indirect indicators such as the increase in house completions, the number of planning permissions granted, HomeBond registrations, and the availability of serviced land which indicate that substantial tracts of serviced residential land are being brought into development.