Tuesday, 6 November 2007
Department of Finance
Question 124: To ask the TÃ¡naiste and Minister for Finance if there are plans to substantially increase the stamp duty rate bands for farm land to take account of inflation in values over the past five years. [27551/07]
Question 125: To ask the TÃ¡naiste and Minister for Finance if he has plans to make a decision to treat the Diversification Fund in the context of Budget 2008 as capital rather than income, while clarifying that the capital receipt is not arising from the disposal of an asset. [27552/07]
The tax treatment of income derived from the payment of diversification aid to former sugar beet growers is a matter for the Revenue Commissioners. I am informed by the Commissioners that based on the information available to them on the current proposals for the payment of such aid the payments will be subject to income tax.
As regards Budget 2008, it is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax or expenditure matters that might be the subject of Budget decisions.
Question 126: To ask the TÃ¡naiste and Minister for Finance his views on whether no capital grants tax should arise on the disposal of farmland to a local authority for road building or road widening purposes provided the proceeds of the compensation are re-invested in farm business assets where it can be demonstrated that the re-investment is necessary for future farm viability; and if he will make a statement on the matter. [27553/07]
I assume that the Deputy has in mind the re-introduction of roll-over relief.
It was announced in the 2003 Budget that no roll-over 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. 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.
Changes to the tax system are considered in the context of the annual Budget and Finance Bill cycle.
As the Deputy will be aware, there is already in place a generous package of reliefs that continue to be available exclusively to the farming sector.