Dan Neville (Limerick, Fine Gael)
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Question 28: To ask the Minister for Finance if, further to Parliamentary Question No. 98 of 18 October 2011 and in view of the fact that the employers PAYE and PRSI have all been paid up to date, the necessary adjustments will be made to ensure the person receives the appropriate PAYE tax credit. [32090/11]

Michael Noonan (Limerick City, Fine Gael)
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This is a matter for the Revenue Commissioners. I am advised by the Commissioners that this credit is granted under Section 472 Taxes Consolidation Act 1997. There are certain conditions that need to be met for the child of the employer to obtain the credit. These are:

· The employee is:

a "specified employed contributor" as defined in Section 472 or that the Income Tax (Employments) (Consolidated) Regulations 2001

have been complied with by her employer

· The employee is:

a full time employee( i.e. is required to devote, throughout the year of assessment, substantially the whole of his/her time to the duties of

the office or employment and the individual does in fact do so) and

· The amount of emoluments paid to the employee in the year of assessment are not less than €4,572

The Income Tax (Employments) (Consolidated) Regulations 2001 set out how PAYE is to be operated and list in detail all of actions required

in relation to an employee. The person claiming the credit is only entitled to the credit if the connected person who is paying the wages

has operated the regulations correctly.

An examination of the records has commenced and will conclude shortly. The PAYE credit will be allowed if all is in order as the

Regulations require.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 29: To ask the Minister for Finance if he will clarify the capital gains taxation position in respect of sale of a principal private residence when the residence enjoys a garden with some development potential; and if he will make a statement on the matter. [32237/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that development land is defined as land, the consideration for the disposal of which is greater than its "current use value". The current use value of land is its value if it were unlawful, to develop it, apart from development of a minor nature, and it continues to remain unlawful to do so. Principal private residence relief (PPR relief) extends to a disposal of a residence and its surrounding grounds of up to one acre. The charge to Capital Gains Tax (CGT) is entirely relieved if the proceeds of disposal do not relate to development land. If a disposal of a principle private residence is also a disposal of development land, then PPR relief will apply only to that part of the gain calculated as if the current use value were the disposal proceeds. The gain on this part of the proceeds (that is, the part equal to the current use value of the land) is entirely relieved from CGT. The gain on the remainder of the proceeds (that is, the full proceeds less the current use value) represents the development land gains on the garden and will be chargeable to CGT at the rate of 25%. A portion of the development land gain could be subject to the windfall tax rate of 80% if the land had 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.