Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 166: To ask the Minister for Finance when a refund of income tax will be made in the case of a person details supplied) in County Kildare; and if he will make a statement on the matter. [30426/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I have been advised by the Revenue Commissioners that an amended PAYE Balancing Statement for 2005 issued to the taxpayer on 26 September 2006. This showed that no tax deductions were made from her income in 2005. Consequently, no entitlement to a refund arises in this instance.

Willie Penrose (Westmeath, Labour)
Link to this: Individually | In context

Question 167: To ask the Minister for Finance the taxation position of a person, who wishes to sell land to their local parish, to enable a school to be constructed thereon, in the context that they would have obtained agricultural relief in respect of the said lands when they succeed to same; if there are taxation provisions which would be beneficial to them in respect of them disposing of an area of land to service such a school; and if he will make a statement on the matter. [30427/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that relief from Capital Acquisitions Tax on gifts and inheritances of agricultural property is available where the beneficiary fulfils certain conditions. If the beneficiary sells the agricultural property within six years of the date of the gift or inheritance a claw-back of the relief will occur, unless the proceeds from the sale are fully expended in acquiring replacement agricultural property within a year of the sale. The extent of the claw-back relates to the amount of the sale proceeds not re-invested. The fact that the sale is to the local parish has no particular advantages regarding the claw-back of agricultural relief.

I am further advised by the Revenue Commissioners that if the previous owner of the land was entitled to relief from capital gains tax (CGT) on its disposal to the current owner, a sale by the current owner, within six years of acquisition, might result in a claw-back of some or all of the that relief. In such a case the CGT, which would have been charged on the previous owner, is assessed and charged on the current owner.

Furthermore, the CGT Acts provides for relief on capital gains arising where an asset is sold to the State or to a charity for a consideration not exceeding the cost of the asset to the owner. However, more information would be required to decide what would be the result in this case.

The Deputy should contact the Revenue Commissioners if he would like more specific information on how the above would apply to the landowner in question.