John Deasy
Ceist:86 Deputy John Deasy asked the Minister for Finance his plans to lower the rate of windfall gain tax; and if he will make a statement on the matter. [24586/12]
Amharc ar fhreagraWednesday, 16 May 2012
Ceisteanna (88)
Freagraí scríofa
The windfall tax rate of 80% applies to the portion of the profit or gain on a disposal of land which is attributable to a "relevant planning decision": that is, a rezoning, where both the rezoning and the disposal of land giving rise to the windfall happen after 30 October 2009; or a "material contravention" decision by a local authority, where both the decision and the disposal happen after 4 February 2010. The purpose of the windfall tax was to apply a higher rate of tax to the profits or gains from land disposals where those profits or gains are attributable to a decision by a planning authority rather than to any value attributable to the work of the landowner.
There is no record of profits of gains subject to the windfall tax having been declared on tax returns to date. This reflects the small number of "relevant planning decisions" since the windfall tax was introduced, as well as the fact that landowners may not make a gain on a disposal of development land in the current market. As with all areas of taxation, the windfall rate is constantly kept under review and any changes will be determined in the context of Budget and Finance Bill.