Brendan Griffin (Kerry, Fine Gael)
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138. To ask the Minister for Finance if there is a capital gains exemption available in respect of the transfer of land without any monetary gain from one brother to another; and if he will make a statement on the matter. [28277/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that capital gains tax (CGT) is charged on gains in respect of the disposal of assets irrespective of whether or not there is a monetary gain accruing to the person making the disposal. Where there is no such monetary gain, CGT is charged on the basis that the asset disposed of was transferred at its market value at the time of the disposal.

There is no specific exemption for land which is transferred without monetary gain from one individual to another. However, a relief from CGT, known as retirement relief, is available where an individual aged 55 or over disposes of land which has been owned and used by him or her for business or farming purposes for a period of at least 10 years prior to the disposal. Farm land which was let prior to being disposed of can qualify for retirement relief in certain circumstances. However, an overriding condition of the relief is that the land must have been owned and used for farming purposes by the individual making the disposal for a period of at least 10 years immediately prior to the time the first letting of the land commenced. Full relief from CGT applies where the market value of the land does not exceed €750,000.  In the case of individuals aged 66 or over, the threshold is reduced to €500,000. Marginal relief may apply where the market value of the land does not greatly exceed either €500,000 or €750,000 as the case may be.