Dáil Éireann Debate, Tuesday - 15 July 2014
256. Deputy Pearse Doherty asked the Minister for Finance the number of farmers exempted from the payment of capital gains tax as a result of the sale of EU entitlements; and the average amount of tax saved per farmer. [31391/14]
Amharc ar fhreagraThe background to the Deputy s question is that a technical change made at EU level to the new Common Agriculture Policy (CAP) arrangements for replacing the Single Payment Scheme for farmers with the Basic Payment Scheme after this year impacts on farmers who let 100% of their farmland and their single farm payment entitlements. As a result of the change, farmers in this position would have lost their farm payment entitlements and the Department of Agriculture, Food and the Marine advised those farmers to sell those entitlements to active farmers by 15 May last (the deadline by which the change takes effect).
On 1 May last, I announced my intention, based on the case made to me, to provide for an exemption from CGT on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an active farmer by 15 May 2014.
Based on figures supplied by the Department of Agriculture, Food and the Marine, there are close to 6,500 lessor farmers affected by the change who would otherwise have an average liability to CGT of about €4,000 on disposal of their entitlements.
I propose to include appropriate provisions to give effect to the CGT exemption in Finance Bill 2014 which will be published shortly after Budget 2015 in the Autumn. While the CGT due on any chargeable gains arising from the disposal of farm payment entitlements made by 15 May would have to be paid in the normal course by 15 December 2014, the Revenue Commissioners have indicated that they will not require such payments to be made pending the passing of the Finance Bill and the coming into law of the relevant CGT amendments to be included in that Bill.
