Brian Lenihan Jnr (Dublin West, Fianna Fail)

The general principle, as has always been the practice, is contained in section 542 of the Taxes Consolidation Act 1997 where the compulsory purchase order was confirmed before 15 October but the local authority had not agreed compensation with the owner of the land or entered on the land by that date. That is the case identified.

The general principle, as set out in section 542 of the Taxes Consolidation Act 1997, has always been clear. The time of disposal of land acquired under a compulsory purchase order is either the date when the compensation is agreed or the time when the local authority enters on the land, whichever is earlier. However, where a disposal of farm land is made under a compulsory purchase order for road building or road widening, the CGT liability will not arise until the year of assessment in which the compensation in received. I do not consider that one can have an exception in the rate of tax applicable to disposal on or after 15 October 2008, notwithstanding the Deputy's generous suggestion.

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