Michael Healy-Rae (Kerry South, Independent)
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Question 178: To ask the Minister for Finance his views on whether persons (details supplied) should receive a refund of capital gains tax; and if he will make a statement on the matter. [23857/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by my colleague, the Minister for the Environment, Community and Local Government, that the responsibility for zoning lands for specific purposes is a matter for planning authorities through their development plans and local area plans. Under the Planning Acts, the making, reviewing and varying of a development plan, and the making, amending or revoking of a local area plan is a reserved function of the elected members of the planning authority for the area. The legislative framework also provides for appropriate public consultation procedures.

Under section 10(8) Planning and Development Act 2000 there is no presumption in law that any land zoned in a particular development plan (including a development plan that has been varied) will remain so zoned in any subsequent development plan. Furthermore, under Section 19(6) Planning and Development Act 2000, as amended, there is no presumption in law that any land zoned in a particular local area plan must remain so zoned in any subsequent local area plan.

Where property is transferred from one generation to another by way of a gift, the person making the transfer could have a Capital Gains Tax (CGT) liability – s/he is deemed to have disposed of the property at market value. Under the self-assessment tax system, the individual's liability would have been calculated on figures provided by the person disposing of the land and/or his tax agents. The individual may also have been able to claim various reliefs and exemptions from CGT on the disposal, depending on the circumstances. There is no CGT liability if a property transfers on a person's death.

The CGT paid by the person disposing of the property can be used as a credit against any Capital Acquisitions Tax (CAT) liability on that same event of the person receiving the property as a gift. The person receiving the gift can also claim the relevant group tax-free threshold (currently

€250,000 for gifts/inheritances from parents to children, and up to €542,544 in previous years) and possibly other CAT reliefs.

The determination of tax charges by reference to the value at the time a taxable event takes place is central to the taxation system. Values may increase or decrease over time subsequent to taxable events. Departing from this basis of determination could lead to unacceptable levels of uncertainty within the taxation system.