Written answers

Wednesday, 26 October 2011

10:00 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 23: To ask the Minister for Finance the position regarding taxing of lump sums (details supplied). [31747/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Changes were introduced in Budget and Finance Act 2011 which reduced the lifetime limit of the tax-free retirement lump sum to €200,000 with any excess over this amount subject to tax on a staged basis. The details supplied with the question relate to the future tax treatment of retirement lump sums. It is not customary that I would comment on the detail of any possible tax changes in advance of the Budget and I am not in a position to do so at this time.

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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Question 24: To ask the Minister for Finance his plans to amend the 80 % windfall tax on rezoned land; and if he will make a statement on the matter. [31588/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The windfall rate of 80% applies to a disposal of development land which has been the subject of a "relevant planning decision" – that is, a decision by a local authority since 30 October 2009 to rezone the land or a decision by a local authority since 4 February 2010 to materially contravene its development plan. The rate applies to the portion of the gain attributable to the "relevant planning decision"; the balance of any gain is taxable at the appropriate Capital Gains Tax, Income Tax or Corporation Tax rate, depending on the circumstances of the disposal. As with all areas of taxation, the windfall rate is constantly kept under review and any changes will be determined in the context of Budget and Finance Bill.

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