Robert Dowds (Dublin Mid West, Labour)
Link to this: Individually | In context | Oireachtas source

152. To ask the Minister for Finance if he is considering revising the way first-time home buyers are treated in terms of stamp duty following the expiry of the exemption; and if he will make a statement on the matter. [16602/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Budget 2011 reduced the Stamp Duty rate on residential property purchases while abolishing some reliefs and exemptions, including First Time Buyer relief. This was done to help broaden the tax base and lower the rate of stamp duty for most purchasers. All purchasers of residential property under €1 million in value, are now only liable for stamp duty at 1%.

I have no plans at this time to reintroduce First Time Buyer relief.

Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

153. To ask the Minister for Finance the position regarding the tax implications of the transfer of leased out entitlements (details supplied); and if he will make a statement on the matter. [16612/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I assume the Deputy is referring to single farm payment entitlements. A single farm payment entitlement is a chargeable asset for capital gains tax (CGT) purposes and once acquired it may be disposed of by way of sale, gift etc. Accordingly, gains arising from the disposal of single farm payment entitlements are chargeable to CGT in the same way as gains made on any other chargeable assets. Where total gains in any year do not exceed €1,270 they are not chargeable to CGT.

With regard to the transfer of single farm payment entitlements for VAT purposes, where a payment entitlement is sold without land then VAT is due at the standard rate on the sale if the sale proceeds exceed the relevant threshold for VAT registration (currently €37,500). However, where a payment entitlement and land are sold together to a person who intends to carry on the farming business, then the sale may be treated as the transfer of a business and not subject to VAT. There may be other less significant tax implications in certain instances.

Officials in my Department are considering this issue with officials from the Department Agriculture, Food and the Marine. However, I have no plans at this time to alter the tax treatment referred to above.