Michael Healy-Rae (Kerry South, Independent)
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281. To ask the Minister for Finance his views on a matter (details supplied) regarding stamp duty relief for farmers; and if he will make a statement on the matter. [36134/15]

Michael Noonan (Limerick City, Fine Gael)
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Following last year's comprehensive review of agri-taxation that was published by myself and the Minister for Agriculture, Food and the Marine, a number of outstanding recommendations were examined further and are being implemented as part of Budget 2016. These include:

- the extension of four measures which were due to expire at end December 2015 for a further three years. This includes the general stock relief, the stock relief for young trained farmers, the stock relief for registered farm partnerships and the stamp duty exemption for young trained farmers;

- the introduction of a new succession transfer proposal. This new proposal is a model whereby two people, for example family members, enter into a partnership with an appropriate profit-sharing agreement and the provision for the transfer of the farm to the younger farmer at the end of a specified period, not exceeding ten years. To support this transfer, an income tax credit worth up to €5,000 will be allocated to the partnership, split according to the profit-sharing agreement. The partnership model will enable a gradual transfer of control, facilitates knowledge transfer, and will provide extra income for the partnership. The purpose of this new model is to provide increased certainty about the timing of the transfer of a farm, which would greatly assist with long-term planning and farm productivity. This new incentive will be subject to state aid approval.

Michael Healy-Rae (Kerry South, Independent)
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282. To ask the Minister for Finance his views on a matter (details supplied) regarding capital gains tax relief for farmland sold under a compulsory purchase order; and if he will make a statement on the matter. [36135/15]

Michael Noonan (Limerick City, Fine Gael)
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The details supplied suggest a Capital Gains Tax (CGT) rollover relief in respect of the proceeds from the sale of farmland under a Compulsory Purchase Order (CPO). General rollover relief was abolished in Budget 2003. One result of rollover relief was that the CGT due on an asset disposal was often never paid. While the public finances are improving, it is still the case that the yield from the various taxes, including CGT, needs to be protected.

An Agri-Taxation review was carried out last year, the objective of which was to maximise the benefits for the farming sector and the wider economy of the existing level of State support through the tax system. The report of the Review was published in the context of Budget 2015 in October last year. The Review bore Food Harvest 2020, among other things, in mind. It sets out a strategy for agri-taxation policy for the future and concluded that the three main policy objectives are:

1. Increase the mobility and the productive use of land

2. Assist succession

3. Complement wider agriculture policies and schemes, such as supporting environmental sustainability

The Review made policy recommendations, taking into consideration the cost of the existing Agri-taxation measures that were already in existence and the need to protect the position of the public finances. Many of the recommendations made were introduced by way of last year's Budget and Finance Bill process including amendments to income tax land leasing reliefs, CGT Farm Restructuring relief and CGT retirement relief. I announced further measures on foot of the Review's recommendations in my Budget 2016 speech on Tuesday last.  However, the Review did not recommend change to the tax treatment of land disposed under a CPO.

I note the concerns of the Deputy, and of landowners who have been subject to CPO. However, for the reasons outlined, I have no plans to introduce CGT roll-over relief in respect of gains on land disposed under CPO. I did, however, announce in my Budget 2016 speech that I am introducing a revised CGT entrepreneur relief from 1 January 2016 under which a lower 20% rate of CGT will apply to chargeable gains arising on the disposal of an individual's qualifying business assets (up to a lifetime limit of €1 million). The revised relief will apply to disposals of qualifying business assets by farmers, among others.  

Michael Healy-Rae (Kerry South, Independent)
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284. To ask the Minister for Finance his views on correspondence (details supplied) regarding an income tax incentive; and if he will make a statement on the matter. [36140/15]

Michael Noonan (Limerick City, Fine Gael)
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In last week's Budget, I announced the introduction of a Succession Farm Partnership, subject to EU State Aid approval. A Succession Farm Partnership is a succession planning model that encourages older farmers to form partnerships with young trained farmers and to transfer ownership of the farm, within a specified period, to that young trained farmer. This relief is available to any individuals, including families, who meet the qualifying criteria. 

The key terms of a Succession Farm Partnership are:

- Where a Registered Farm Partnership exists, where one participant is a farmer who owns land and the other participant is a young trained farmer, this partnership may become a Succession Farm Partnership.

- In general, there can only be two partners: an anchor farmer and a young trained farmer successor.  Where the anchor farmer's land was co-owned, or where the anchor farmer intends to pass the farm jointly to a successor and that successor's spouse or civil partner, then exceptions are made.

- The anchor farmer must agree to transfer the farm to the successor within 3 to 10 years of entering into the partnership.

- For the first five years of the partnership, or up until the successor reaches the age of 40, the partners are entitled to a 'succession tax credit' of €5,000 per annum divided between them. This tax credit can only be used against the profits of the farm. The partners can apportion the tax credit between them based on relevant agreements. If the farm is not transferred as agreed at the outset, then this tax credit is clawed back.

Michael Healy-Rae (Kerry South, Independent)
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285. To ask the Minister for Finance his views on correspondence (details supplied) regarding an income tax volatility measure; and if he will make a statement on the matter. [36143/15]

Michael Noonan (Limerick City, Fine Gael)
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I have no plans to introduce a individualised income tax volatility measure for farmers that would allow farmers to delay payment of taxes. As the Deputy will be aware, income averaging is available to farmers in recognition of the volatility of their income, which I believe is ultimately more beneficial than delaying the payment of tax.

The Deputy may be aware that following the review of agri-tax measures that was carried out in 2014, I amended the income averaging scheme for farmers to extend the period over which income can be averaged from three years to five, in order to give more scope for income smoothing within a commodity price cycle.

Michael Healy-Rae (Kerry South, Independent)
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286. To ask the Minister for Finance his views on correspondence (details supplied) regarding agricultural leave; and if he will make a statement on the matter. [36141/15]

Michael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy is referring to Capital Acquisitions Tax (CAT) agricultural relief. The importance of agriculture in the Irish economy is well recognised. In this context, a specific relief from CAT is provided for gifts and inheritances of agricultural property once certain conditions are satisfied. This relief is known as Agricultural Relief. The aim of the relief is to ensure the active use of agricultural land. The relief takes the form of a reduction in the market value of the agricultural property by 90% for the purposes of establishing whether or not a CAT liability arises on the gift or inheritance and that relief remains in place.

The tax-free thresholds above which CAT applies were reduced considerably over the period of the financial crisis and at a time of falling asset prices in order to help maintain the yield from capital taxes.  Asset prices, particularly property prices, have been recovering strongly although not to the levels experienced during the boom. In recognition of this recovery, I announced in my Budget Speech on Tuesday last an increase in the Group A tax-free threshold, which broadly applies to transfers between parents and their children, from €225,000 to €280,000.