Paul Kehoe (Wexford, Fine Gael)
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Question 226: To ask the Minister for Finance if persons (details supplied) in County Wexford are being jointly assessed for tax; if they are in receipt of the correct tax credits; and if he will make a statement on the matter. [40036/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that current information on record on behalf of the taxpayers is not in accordance with the information provided in the details supplied with the question. In order to clarify matters, the Wexford Revenue District will make direct contact with the taxpayers and amend records and relevant tax credits as appropriate.

Seán Haughey (Dublin North Central, Fianna Fail)
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Question 227: To ask the Minister for Finance if the sale of a family home which was rented out from 2002 to 2004, but which was used as a family home before and after these dates, is liable for capital gains tax; if the fact that the owner is a lone parent in financial difficulties and that their daughter slept in the house between 2002 and 2004, would make a difference in determining liability; and if he will make a statement on the matter. [40068/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that there is an exemption from capital gains tax on gains made by an individual on the disposal of his/her dwelling house together with land occupied as its gardens or grounds up to an area of one acre.

Full exemption applies where the dwelling house has been occupied by the individual as his/her principal private residence throughout his/her period of ownership. Where the house is not so occupied during the whole period of ownership, the proportion of the gain applicable to the period of occupation is exempt. This proportion is the same proportion as the length of the period of owner-occupation (inclusive of the last 12 months of ownership in any event) bears to the length of the period of ownership. The exemption is restricted, however, where there is a sale of development land.

Periods spent in employment abroad and periods of absence due to the situation of an individual's place of employment may be treated as periods of occupation of the residence. The exemption may also apply where the house has been the sole residence of a dependent relative.

The legislation governing the exemption does not allow for the financial or individual circumstances of the owner in question to be taken into account. Similarly, as the daughter does not appear to be a dependent relative her use of the property would not be taken into account. The Deputy should contact the Revenue Commissioners if he would like more specific information on the extent to which the exemption would apply to the homeowner in question.