Dáil Éireann Debate, Thursday - 8 September 2022
341. Deputy Colm Burke asked the Minister for Finance if the regulation that limits agricultural relief on capital acquisitions tax to land where solar panels constitute less than 50% of the holding will be removed in order that there will be no restriction in this regard; if land and holdings that constitute up to 100% will qualify, in order to assist in meeting Ireland’s renewable targets; and if he will make a statement on the matter. [42434/22]
Amharc ar fhreagraPrior to Finance Act 2017, agricultural land which was leased for solar panels was not classified as qualifying agricultural property for the purposes of Capital Gains Tax retirement relief or agricultural relief from Capital Acquisitions Tax.
Following a review announced in Budget 2018, and in recognition of the then Government's commitment to facilitate the development of solar energy projects in Ireland, a revised approach was introduced whereby it is now possible for land leased for the installation of solar panels to be classified as qualifying agricultural property under certain conditions. A key condition is that the total area of land under lease and on which solar panels are installed does not exceed 50% of the total area of agricultural land.
While introducing this amendment, it was important that we did not lose sight of the fundamental principle which underpins our policy in relation to agricultural relief and retirement relief.
I recognise that allowing land leased for solar panels to be classified as qualifying agricultural property is an important element in encouraging solar energy projects. However, this must also be carefully balanced with the overarching objectives of this valuable relief which aims to encourage the inter-generational transfer of agricultural land which is being actively farmed.
Department of Finance officials have recently engaged directly with officials from Department of Agriculture, Department of Energy, Climate and Communications and Revenue in consideration of this matter, as well as other solar energy policy measures, in a broader government context.
