Seán Fleming (Laois-Offaly, Fianna Fail)
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233. To ask the Minister for Finance the taxation rules regarding the sale of land with a forestry crop and that the sale of the land is subject to capital gains tax but the part of the proceeds attributable to the trees is subject to universal social charge whereas the sale of other crops on the land is all subject to capital gains tax and no portion of the proceeds is subject to universal social charge; and if he will make a statement on the matter. [40178/14]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that where an individual disposes of woodland, the consideration for the disposal of the trees growing on the land and saleable underwood are not taken into account for capital gains tax purposes. Thus, where land held by an individual is sold with standing timber on it, the consideration for the disposal is to be apportioned and the part of the consideration attributable to the trees or saleable underwood is excluded. Insurance proceeds received by an individual in respect of the destruction of or damage to standing timber or saleable underwood are also excluded for capital gains tax purposes.

As the consideration for trees growing on the land and saleable underwood is excluded from the sale proceeds of woodland, such part of the cost of the woodland attributable to standing timber and saleable underwood is also excluded in computing any gain or loss on the disposal.

The relief applies to individuals only. It does not apply to companies or other bodies of persons.

The consideration relating to trees growing on the land and the saleable underwood continues to be regarded as income arising from a trade or profession and, in the normal course of events, is liable to income tax, PRSI and USC.  However, such income benefits from a specific income tax exemption.  There is no equivalent exemption in relation to PRSI and USC.