Jimmy Deenihan (Kerry North, Fine Gael)
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Question 125: To ask the Minister for Finance if the 80% windfall tax under the National Asset Management Agency applies to the sale of a site for a one-off rural house; if so, if the land owner is exempt from the tax if they are over 55 years and farming the land for more than ten years; and if he will make a statement on the matter. [46727/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The purpose of the new windfall gains provisions is to apply a higher 80% rate of tax to the profits or gains from land disposals where those profits or gains are attributable to a rezoning decision made by a local authority rather than to any value attributable to the work of the landowner. Subject to certain specified exceptions, the provisions will affect any individual or company who disposes of land that is rezoned on or after 30 October 2009. There are only two situations where such rezoned land may be disposed of without attracting the 80% tax rate:

1. Where the land is sold to an authority possessing compulsory purchasing powers solely because of the exercise by that authority of its compulsory purchase powers or where such an authority has given formal notice that it will exercise those powers.

2. Where the land is sold by a 75% subsidiary company of the National Asset Management Agency.

Where these two situations do not apply, the new 80% tax rate applies to any part of the profits or gains from the sale of a site for a one off rural house that is attributable to a rezoning decision made on or after 30 October 2009.

I am informed by the Revenue Commissioners that where gains arising from the sale of land that are attributable to a rezoning decision made on or after 30 October 2009 are chargeable to capital gains tax rather than to income tax, some, or all, of such gains may be relieved from tax. This relief is known as 'retirement relief' and applies where certain conditions are met. In the case of a disposal of farmland, such conditions include the requirement for the landowner to be over 55 years of age and to have owned and farmed the land for the 10 years prior to disposal. The relief applies in full to an aggregate lifetime consideration for disposals of land and other farm assets of up to €750,000. Restricted relief applies to amounts that exceed this threshold. Farm assets include payment entitlements under the Single Payment Scheme where those entitlements are sold together with the associated land to the same person. In common with all taxation measures, I will review the application of the "windfall tax" measure to once-off disposals of sites for housing in the context of the forthcoming Finance Bill.

Joan Burton (Dublin West, Labour)
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Question 126: To ask the Minister for Finance if he will confirm receipt of correspondence dated 26 March 2009 and 14 October 2009 from a person (details supplied); his views on whether there exists an anomaly or anomalies in the tax system with respect to the creation of an up front tax liability in respect of stamp duty and capital gains tax in the example provided; if he will take steps to rectify this in the forthcoming finance Bill; and if he will make a statement on the matter. [46771/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Correspondence dated 26 March 2009 and 15 October 2009 was received in my Department from the person referred to by the Deputy. Replies issued to these letters on 5 June 2009 and 9 November 2009 respectively. In the case in question, a Stamp Duty liability may arise if property of an increased value is acquired, and a Capital Gains Tax charge may arise if property is disposed of. Neither the Minister for Finance nor Revenue is empowered to waive, defer or reduce Stamp Duty that may arise under the Stamp Duties Consolidation Act 1999, or Capital Gains Tax that may arise under the Taxes Consolidation Act 1997.

I do not currently propose to make changes in this area but as the Deputy is aware, all taxes and potential taxation measures are constantly reviewed in the context of the Budget and Finance Bill. However, it is not customary for the Minister for Finance to comment on the detail of possible tax and expenditure changes in advance.