Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the reason for allowing property owners to be exempt from the proposed property tax for land over one acre; and if he will estimate the revenue he is willing to forego by limiting the property tax to the valuation of property on one acre. [5782/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that in line with other taxes such as Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT), where the market value of residential property is relevant to the assessment for a tax, the curtilage of the dwelling house includes an area of up to one acre. This is regarded as land which is enjoyed as an amenity with the dwelling-house and includes driveways, yards and gardens which belong with the dwelling-house. The tax is intended to be a tax on residential property as normally defined so I do not agree that taxing a residential property plus one acre means that revenue is being foregone. In any event, it is not possible to estimate what yield would arise from applying the Local Property Tax to a larger area as no valuation of such property is available. If a property is situated on grounds in excess of one acre, while the LPT will only apply to the house plus one acre, the balance of the property will be liable to CGT on disposal as it will not benefit from the CGT relief for principal private residences.