Bernard Allen (Cork North Central, Fine Gael)
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Question 275: To ask the Minister for Finance if he would allow exemption from stamp duty in a case where a family are purchasing a home in order to accommodate a disabled person. [23572/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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All owner-occupiers are generally exempt from stamp duty on new houses where the property is 125 square metres or less. First time buyers are also exempt from stamp duty on second hand houses up to the value of €190,500 and benefit, thereafter, from reduced rates on second hand properties up to €381,000 when compared to other purchasers.

The stamp duty code does not provide exemptions based on the particular circumstances referred to by the Deputy. I have been advised by the Department of the Environment, Heritage and Local Government that local authorities are responsible for administering the disabled persons new house grant. Subject to eligibility, this grant is awarded to individuals with disabilities who are forced to buy new dwellings because the previous dwelling did not accommodate the specific needs of the individual. The individual in question may contact the relevant local authority for further information, as well as a grant application, where applicable.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 276: To ask the Minister for Finance if he will introduce roll over relief on capital gains tax for landowners who have had their lands purchased for road construction; and if he will make a statement on the matter. [23573/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Capital gains tax, CGT, is a tax on a capital gain arising on the disposal of assets. A 20% rate of CGT now applies on the gains arising on the disposal of assets, including land which is the subject of a compulsory purchase order, CPO.

It was announced in the 2003 budget that no rollover relief would be allowed for any purpose on gains arising from disposals on or after 4 December 2002. This relief was introduced when CGT rates were much higher than current levels. In effect, it was a deferral of tax to be paid, where the proceeds of disposal were re-invested into replacement assets. The taxation of these gains would take place following the eventual disposal of the new assets without their replacement.

The abolition of this relief was in accordance with the overall taxation policy of widening the tax base in order to keep direct tax rates low. Reliefs and allowances made sense when CGT rates were 40% and above. In the 1998 budget, the rate was halved from 40% to 20%. Taxing capital gains when they are realised is the most logical time to do so, and this change brought CGT into line with other areas.

In view of overall taxation policy, there are no plans to change the methods by which CGT is calculated on land that has been compulsorily purchased. Accordingly, there are no plans to reintroduce roll-over relief.