Billy Timmins (Wicklow, Independent)
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253. To ask the Minister for Finance the position regarding a tax free allowance in respect of a person (details supplied); and if he will make a statement on the matter. [13863/14]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Office of the Revenue Commissioners that in this case (details supplied) the person concerned is assessed jointly with her husband. The Department of Social Protection pension paid to her husband is taxed by a reduction of the credits and rate bands as outlined on the Tax Credit Certificate that issued on 10^th January 2014.  Wicklow District, Office of the Revenue Commissioners will contact the person concerned directly to discuss the possible redistribution of her tax credits.

Denis Naughten (Roscommon-South Leitrim, Independent)
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254. To ask the Minister for Finance further to his Department's discussions with the Department of Agriculture, Food and Marine, his plans to address taxation issues which arise as a result of the transfer of leased single farm payment entitlements; and if he will make a statement on the matter. [13900/14]

Michael Noonan (Limerick City, Fine Gael)
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A single farm payment entitlement is a chargeable asset for capital gains tax (CGT) purposes and once acquired it may be disposed of by way of sale, gift etc. Accordingly, gains arising from the disposal of single farm payment entitlements are chargeable to CGT in the same way as gains made on any other chargeable assets. Where total gains in any year do not exceed €1,270 they are not chargeable to CGT.

With regard to the transfer of single farm payment entitlements for VAT purposes, where a payment entitlement is sold without land then VAT is due at the standard rate on the sale if the sale proceeds exceed the relevant threshold for VAT registration (currently €37,500). However, where a payment entitlement and land are sold together to a person who intends to carry on the farming business, then the sale may be treated as the transfer of a business and not subject to VAT. There may be other less significant tax implications in certain instances.

As the Deputy has noted, officials in my Department are considering this issue with officials from the Department Agriculture, Food and the Marine.  However, I have no plans at this time to alter the tax treatment referred to above.