Pat Deering (Carlow-Kilkenny, Fine Gael)
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93. To ask the Minister for Finance the way in which inheritance tax will be treated for transfer of a family farm to a son or daughter if the income from solar panels and or wind turbines, is part of the transfer. [23448/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that where an inheritance is taken from a parent by a son or daughter, the Group A tax-free threshold for Capital Acquisitions Tax (CAT) of €280,000 applies. The son or daughter will not be liable to CAT if the value of the inheritance, when aggregated with all other gifts and inheritances received from a parent since 5 December 1991, does not exceed this threshold. CAT, currently at a rate of 33%, is payable on aggregate inheritances in excess of this threshold.

In addition, where the inheritance consists of agricultural property, including land, it may qualify for relief, known as 'agricultural relief', from CAT once certain conditions are satisfied. Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for this relief which takes the form of a 90% reduction in the taxable market value of the gifted or inherited agricultural property.

The person taking the inheritance (the 'beneficiary') of the agricultural property must qualify as a 'farmer' for the purpose of section 89 CATCA 2003. This means, among other conditions, that a beneficiary's agricultural property must comprise at least 80% by gross market value of the beneficiary's total property at a particular date. Revenue take the view that land on which a wind turbine or solar panels are installed is not agricultural property.

Thus, depending on the amount of an individual's land that is actually occupied by wind turbines or solar panels, the use of agricultural land for wind turbines or a solar farm may result in a beneficiary not meeting the '80%' test to qualify for agricultural relief. 

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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94. To ask the Minister for Finance the plans if any he has lower the VAT rate on items (details supplied); and if he will make a statement on the matter. [23558/16]

Michael Noonan (Limerick City, Fine Gael)
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All fruit juices, soft drinks, bottled water and smoothies are subject to the standard VAT rate, currently 23%.  The standard rate is the VAT rate applied to such products in the majority of EU Member States.  Prior to 1992 bottled waters and fruit juices had applied at the zero rate, but were made subject to the standard rate from 1 November 1992 in order to correct a competitive anomaly, as similar competing products such as soft drinks were standard rated. The change in the VAT treatment coincided with the removal of excise duty from bottled water.

Where a product was zero rated prior to 1 January 1991 but subsequently standard rated, it is not possible to reintroduce the zero rate for that product.  However, under Annex III of the EU VAT Directive, Member States are permitted to apply a reduced rate of not less than 5% to soft drinks, bottled water and fruit juices.  However, a reduction in the rate of VAT on such products would be costly to the Exchequer and I have no plans to reduce the rate of VAT on bottled water, fruit juices or smoothies.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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95. To ask the Minister for Finance his plans if any to introduce a sugar tax; and if he will make a statement on the matter. [23560/16]

Michael Noonan (Limerick City, Fine Gael)
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The Programme for Partnership Government  commits to the introduction of a tax on sugar-sweetened drinks (SSDs). The tax will contribute towards important public health goals, as well providing a new source of revenue for public spending and decreases in personal income taxation.  The tax on sugar-sweetened drinks has been proposed by the Department of Health in order to reduce added-sugar in diets, particularly the diets of children and young people, and comprises one measure in a comprehensive Department of Health plan to tackle obesity in Ireland, which is due to be published this year. Sugar-sweetened drinks taxes have been introduced in a number of European countries in recent years, with the UK due to introduce a soft-drinks industry levy from 2018 . The design and implementation of the tax is a matter for the budgetary process.