Michael Moynihan (Cork North West, Fianna Fail)
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89. To ask the Minister for Finance to outline the way in which capital gains tax is calculated on easements; and if he will make a statement on the matter. [29607/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that an easement is an asset for capital gains tax (CGT) purposes. The receipt by a person of a capital sum for an easement is a disposal which is liable to CGT at the rate of 33%. An exemption is available in respect of the first €1,270 of chargeable gains made by an individual in a tax year.

Brendan Griffin (Kerry, Fine Gael)
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90. To ask the Minister for Finance if there is a capital gains exemption available in respect of the trade of equivalent areas of land without any monetary gain from one brother to another; and if he will make a statement on the matter. [29617/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that capital gains tax (CGT) is charged on gains arising on the disposal of assets irrespective of whether or not there is a monetary gain accruing to the person making the disposal. In the case referred to by the Deputy, each brother is treated as disposing of his land to the other brother, the consideration being the land that is transferred to him by the other brother. Any gain arising to each brother on the transfer of the land is charged to CGT.

There is no specific exemption from CGT in respect of the transfer of equivalent areas of land without monetary gain from one brother to another. A relief from CGT, known as farm restructuring relief, is available where two individuals exchange land with each other.  The purpose of the relief is to facilitate the consolidation of farm land, thereby ensuring the more productive use of the consolidated land holding.

The relief applies where the first transaction in the restructuring, for example, the sale, purchase or exchange of farm land, is carried out on or before 31 December 2016 and where the restructuring is completed within 24 months. The relief is confined to agricultural land only; it does not apply to buildings on the land. In order to qualify for the relief, Teagasc must certify that the sale, purchase or exchange complies, or will comply, with the conditions relating to farm restructuring set down in Guidelines published by the Department of Agriculture, Food and the Marine. Full relief is available where the lands being exchanged are of equal value. Where the land being transferred by one party to the other is of less value than the other land being transferred, the relief is reduced on a proportionate basis.