Patrick O'Donovan (Limerick, Fine Gael)
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197. To ask the Minister for Finance his proposals for tax relief for farmers who bought milk quotas prior to 2000, or single payments between 2005 and 2013; the workings of this relief relating to capital gains tax; and if he will make a statement on the matter. [39572/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a claim for capital gains tax relief may arise under section 538 of the Taxes Consolidation Act 1997 in respect of losses incurred by the owners of milk quotas as a result of the abolition of those milk quotas earlier this year where those milk quotas were purchased by the persons concerned. The allowable loss is the capital loss equivalent to the amount incurred by the person when the milk quota was acquired. However, the amount of the loss allowable is restricted to the extent that it has been covered by the amount of capital allowances or renewals allowances granted for income tax purposes. This restriction applies to quotas which were purchased on or after 1 April 2000. 

As regards Single Farm Payment entitlements that were purchased between 2005 and 2013, a claim for capital gains tax relief may also arise under section 538 of the Taxes Consolidation Act 1997 in respect of the abolition of such entitlements. As in the case of milk quotas referred to above, the allowable loss is the capital loss equivalent to the amount incurred when the Single Farm Payment entitlements were acquired.

Claims for relief under section 538 of the Taxes Consolidation Act 1997 should be made to the Revenue District dealing with the tax affairs of the person concerned.