Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 111: To ask the Minister for Finance if a proposed development of 19 houses in a rural village in County Kilkenny will be liable for 80% windfall tax as proposed in Budget 2010; and if he will make a statement on the matter. [9365/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The windfall tax rate of 80% applies to the portion of a profit or gain made on the disposal of land which is attributable to a rezoning, where both the rezoning and the disposal giving rise to the windfall happen after 30 October 2009.

A "rezoning" for this purpose means a change from a non-development land use to a development land use, or a mixture of development land uses, or from one development land use to another development land use or to a mixture of such uses. "Development land uses" are residential, industrial and commercial; "non-development land uses" are agricultural, open space, recreational or amenity.

The 80% rate applies only to the portion of the profit or gain on the disposal of the land which is attributable to a rezoning. The balance of the gain is taxable at the normal capital gains tax rate, if the disposal is treated as a chargeable gain, or at the appropriate income tax or corporation tax rate, if the disposal is as part of a trade of dealing in or developing land.

The rationale for taxing this part of the profit or gain at a higher rate is because it is attributable to an administrative decision – that is, to rezone the land – rather than to anything done by the landowner.

It is not possible for me to comment on the liability to windfall tax with regard to a particular development, such as the one in County Kilkenny mentioned by the Deputy. Liability to the windfall tax will depend on whether the land in question was both rezoned and disposed of after 30 October 2009.

Jack Wall (Kildare South, Labour)
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Question 112: To ask the Minister for Finance when mortgage interest relief will be implemented in respect of a person (details supplied) in County Kildare; if this person is entitled to arrears; and if he will make a statement on the matter. [9414/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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This is a matter in the first instance for the Revenue Commissioners who are responsible for the administration of mortgage interest relief through the tax relief at source (TRS) system. I am advised by the Revenue Commissioners that following direct contact with the person concerned, Revenue is satisfied that there is an entitlement to relief. Accordingly, arrangements have been made for payment of the relief through the TRS system and also for payment of arrears due.