Joanna Tuffy (Dublin Mid West, Labour)
Link to this: Individually | In context

Question 1616: To ask the Minister for Agriculture, Fisheries and Food the position regarding the implementation of the recommendation in the Report of the Seafood Industry Strategy Review Group, that a tax life for qualifying fishing vessels be introduced; and if he will make a statement on the matter. [30877/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

The Strategy for a Restructured, Sustainable and Profitable Irish Seafood Industry 2007-13 (the Cawley Strategy — recommendation 7.8) recommends that consideration be given to the introduction of a tax life for fishing vessels in the context of any future decommissioning scheme.

The 2008 Finance Act contains a number of measures specifically designed to reduce the tax burden on fishermen taking up the decommissioning scheme, which was announced in February, including qualifying for capital gains tax exemption (retirement relief) for proceeds up to €750,000 with marginal relief applying above this limit. There is also a reduction in the qualifying age requirement for an individual making such a disposal from 55 years of age to 45 years of age, and the required period of ownership and usage of the asset is reduced from 10 years to 6. Also, if balancing charges arise (in relation to income tax) these can now be spread over 5 years commencing in the year in which the payment is received.