Written answers

Wednesday, 20 April 2016

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

118. To ask the Minister for Finance if he will reconsider reducing the rate of value added tax payable by ice-cream parlours to 9% in recognition of the labour intensive nature of the business and the heavy dependency that such businesses have on tourism; and if he will make a statement on the matter. [7788/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The standard rate of VAT, currently 23%, applies to the sale of ice-cream, as it does to most confectionery and sugary foods. In this respect, ice-cream parlours selling ice cream to customers must charge the 23% rate on the supply of ice-cream. Where ice-cream is provided as part of a meal by a caterer, such as a restaurant, the meal, including the ice-cream element, is liable to VAT at the 9% reduced rate.

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
Link to this: Individually | In context | Oireachtas source

119. To ask the Minister for Finance the status of the case of persons (details supplied) in County Kerry who would like clarification on consolidating their farms without incurring capital gains tax; and if he will make a statement on the matter. [7805/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Revenue Commissioners that section 599 of the Taxes Consolidation Act 1997 gives relief from Capital Gains Tax for the disposal by a person, who has attained the age of 55, of a farm to his/her children.

There is provision for a clawback of the relief where the assets transferred to the children are subsequently disposed of by the children within 6 years of the date of transfer. In any such case, the capital gains tax which would have been charged on the transferor (if the relief had not applied) is assessed and charged on the children, in addition to the tax on any gain made by the children on his/her disposal of the assets.

The issues around whether the beneficiaries of the gifted land in this case would qualify for the farm restructuring relief provided for in section 604B of the Taxes Consolidation Act 1997, in the circumstances outlined in the details supplied by the Deputy, are being examined by the Revenue Commissioners. I will write to the Deputy again in this matter shortly when Revenue's considerations are completed.

Comments

No comments

Log in or join to post a public comment.