Willie Penrose (Westmeath, Labour)
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Question 182: To ask the Minister for Finance if a person who retired from farming and participated in the farm retirement scheme will gain the special exemptions attached to the capital gains tax computation (details supplied); and if he will make a statement on the matter. [39684/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that it is not possible on the basis of the information supplied by the Deputy to confirm whether the taxpayer in question will be entitled to relief — known as retirement relief — from capital gains tax on the disposal of his entire landholding.

Land leased in compliance with the terms of the EU schemes of early retirement from farming is a "qualifying asset" for retirement relief purposes provided it was owned and used for farming purposes by the individual claiming relief throughout the period of ten years prior to it being leased. On a disposal of the land, full relief is available where the individual is 55 years or more and the consideration, inclusive of any earlier disposals of "qualifying assets", does not exceed €500,000. Otherwise marginal relief may apply. Where the disposal is to a child or favoured nephew or niece of the individual the €500,000 threshold does not apply.

Retirement relief in the circumstances outlined above is conditional on an individual transferring an interest in his or her lands for the purposes of complying with the terms of the relevant scheme. Providing those terms were complied with, the non-receipt of a pension by the individual in question would not prevent him or her from availing of this relief. The taxpayer in question should contact the Revenue Commissioners if he would like further details on the availability of this relief.