Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 239: To ask the Minister for Finance if a one off housing development which was subject to a rezoning decision is subject to the new rate of capital gains tax introduced in the National Asset Management Agency Act, 2009; and if he will make a statement on the matter. [4792/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The windfall tax rate of 80%, which was introduced under the National Asset Management Agency Act, applies to the portion of any profit or gain made on the disposal of land which is attributable to a rezoning, where both the rezoning and the disposal of land giving rise to the windfall occur after 30 October 2009. A rezoning for windfall tax purposes is defined as a change from a non-development land use – agricultural, amenity, open space or recreational use – to a development land use – residential, commercial or industrial use – or a mixture of such uses, or a change of development land use.

It is not clear from the Deputy's question whether he has a particular development in mind or when the land in question was rezoned. If no change of zoning was required, or if the land was rezoned before 30 October 2009, the windfall rate will not apply. However, the rate will apply if the land has been rezoned after that date.

There are two situations where such rezoned land may be disposed of without attracting the 80% tax rate:

1. Where the land is sold to an authority possessing compulsory purchasing powers solely because of the exercise by that authority of its compulsory purchase powers or where such an authority has given formal notice that it will exercise those powers.

2. Where the land is sold by a 75% subsidiary company of the National Asset Management Agency.

The 80% tax rate will only apply to the part of the profits or gains that is attributable to the rezoning decision. The balance of the profit or gain will continue to be taxed at the normal income tax, corporation tax or capital gains tax rates, as appropriate.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 240: To ask the Minister for Finance the eligibility for mortgage interest relief in respect of a person who traded up their house in 2007, having purchased as a first time buyer in 2003, to continue to receive mortgage interest relief in the seven year period after 2007. [4856/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Based on the information provided there would be an entitlement to mortgage interest relief from 2003, including entitlement on the new mortgage taken out when the person traded up to a new property in 2007. Having received mortgage interest relief for seven tax years from 2003 to 2009 at the first-time buyer rate, the person is now entitled to receive mortgage interest relief on the new property at the non-first time buyer rate of 15% per annum, on interest paid up to a maximum of €3,000, for a single person.

The entitlement to relief in this instance was due to end in 2013. However, in Budget 2010, I announced that I would be extending mortgage interest relief up to the end of 2017, at the appropriate rate, for those whose entitlement to relief was due to end in 2010 or after. This means those who took out qualifying loans from 2004. Full details of the measures giving effect to this announcement will be provided in the forthcoming Finance Bill.

Noel Ahern (Dublin North West, Fianna Fail)
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Question 241: To ask the Minister for Finance the date from which the reduced VAT rate of 21% applies; if it is in order for a utility company (details supplied) to issue invoices dated January 2010 at the old rate; and if he will make a statement on the matter. [4888/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The reduction in the standard rate of VAT from 21.5% to 21% applies with effect from 1 January 2010. In the case of continuous supplies of telecommunications services, electricity or gas, for which a bill is issued at least every three months, the rate of VAT that should be charged is the rate in force at the date of issue of the bill. In all other cases of services to private individuals, the correct rate is the rate in force at the time of supply of the services.

The Revenue Commissioners have published a comprehensive information note about the application of the decrease in the standard rate of VAT, which is available on their website –www.revenue.ie/en/tax/vat/leaflets/vat-rate-change.html.

Finally, I would add that Revenue are making enquiries in relation to the question of the issue of invoices at an incorrect rate by the company mentioned by the Deputy.