Written answers

Tuesday, 8 July 2014

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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224. To ask the Minister for Finance the tax concessions available in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [29903/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that there are no tax concessions available in respect of a person disposing of shares in the circumstances outlined by you. As I stated in a reply to a previous PQ from the Deputy in relation to this issue, farmers who sell shares in order to make capital investments in their farms are no different to any other taxpayers who may decide to sell shares or other assets. 

It is important to note that it is only an actual chargeable gain that is subject to capital gains tax, not the entire consideration received from a sale of shares. In addition, any gains made in a year from disposals of chargeable assets up to a total of €1,270 will not incur any capital gains tax - €1,270 is the annual capital gains tax exemption for individuals.

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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225. To ask the Minister for Finance if his attention has been drawn to an issue (details supplied) which makes Irish companies selling services in the UK uncompetitive against UK-based competitors; his plans to address the situation; and if he will make a statement on the matter. [29904/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the EU VAT Directive, with which Irish and UK VAT legislation must comply, distinguishes between a supply of goods and a supply of services.  Where an Irish VAT registered trader makes a supply of goods to a UK business then the Irish trader zero-rates the supply and the UK business self-accounts for VAT on the goods.  The UK trader will have the right to deduct this VAT if the goods are used for his taxable supplies.  

The position with services is that where an Irish VAT registered trader makes a supply of services to a UK business then the place of supply for VAT purposes is the UK and the Irish trader zero-rates the supply, and the UK business self-accounts for VAT.  Again, the UK trader will have the right to deduct this VAT if the services are used for his taxable supplies.   

In this way, suppliers established in Ireland compete on a level playing field in the UK market with UK established suppliers.

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