Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I am widening the definition of registered farm partnerships to add other production partnerships, such as beef, to the 640 milk production partnerships that can already avail of the enhanced 50% rate of stock relief. Qualifying young trained farmers in such partnerships can continue to avail of the 100% rate of stock relief. Furthermore, as small businesses, many of the other reforms in the ten-point tax reform plan will benefit farming and the agrifood sectors.

In order to improve farm efficiency and help achieve the targets in Food Harvest 2020, I am introducing a relief from capital gains tax arising on disposals of farm land for farm restructuring purposes. This is a once-off relief which will apply in respect of transactions initiated in the period from the start of January 2013 to end-December 2015, subject to obtaining EU state aid approval. These measures are designed to create additional jobs in farming and the agrifood sectors.

Film Industry

This year, my Department carried out an economic impact assessment of the current film tax relief scheme, widely known as section 481. In light of the report’s findings, which I have published today, and after consultation with the relevant Minister, Deputy Deenihan, and representatives of the film and TV industry in Ireland, I propose to extend the film tax relief scheme to 2020; reform the operation of the scheme by moving to a tax credit model in 2016 so as to ensure better value for taxpayers' money and eliminate the need for high income investors to provide the funding for the scheme; and enhance the scheme so as to make Ireland even more attractive for foreign film and TV productions. These changes will rectify the anomaly by which investors received a disproportionate amount of the tax relief as opposed to the funds going to production. These measures are designed to create additional jobs in the film industry.

Tourism Industry

The year 2013 is very important for the tourism industry. Promotion of The Gathering has been under way for some time and reports indicate that it is striking a chord both at home and abroad. It is an initiative that we should all support. Due to the nature of the tourism sector, the supports I have announced already to assist the small and medium enterprise sector will apply to most of the businesses in the tourism industry. In addition, the tourism industry is already benefitting from the second reduced rate of VAT of 9% that I introduced in the jobs initiative in May 2011. I confirm that the VAT rate of the tourism industry will continue at 9% in 2013.

Property

In last year’s budget, I introduced certain measures to help stabilise the property market, which was one of the major constraints on economic growth. This year has seen the first signs of stability in both the residential and commercial property markets in six years. The residential market is showing increased activity due to the return of economic growth and the impact of the enhanced mortgage interest relief I introduced last year. This measure will end on 31 December this year as I have set out on numerous occasions. However, in order to maintain momentum in the domestic property market, I am providing an exemption from the new local property tax up to the end of 2016 for any new or previously unoccupied homes bought in that period and, in addition, purchases of any homes in 2013 by first-time buyers will also be exempt for the same period. This exemption for three years from the local property tax will also apply to residences in unfinished estates.

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