Patrick O'Donovan (Limerick, Fine Gael)
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219. To ask the Minister for Finance the position regarding exemption from capital gains tax (details supplied). [21504/14]

Michael Noonan (Limerick City, Fine Gael)
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On 1 May, 2014 I announced my intention to provide a capital gains tax (CGT) exemption in this year's Finance Bill to certain farmers who dispose of their single farm payment entitlements on foot of changes being introduced under the new EU Common Agriculture Policy (CAP).

The exemption is to be provided on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an "active" farmer by 15 May 2014.

On the basis of the limited information provided by the Deputy, the landowner whose lease expired on 31 December 2013 and who now transfers full ownership of the payment entitlement to an active farmer before 15 May 2014, will qualify for the capital gains tax exemption.

As regards the second scenario, since the farmer himself claimed and received the single farm payment in 2013, the situation outlined above does not apply to him and he would not qualify for this exemption.