Danny Healy-Rae (Kerry, Independent)
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308. To ask the Minister for Finance to review the tax relief on private health insurance (details supplied); and if he will make a statement on the matter. [3484/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 470 of the Taxes Consolidation Act 1997 provides for tax relief in respect of payments made to authorised insurers under relevant contracts in respect of medical insurance and dental insurance.

Income tax relief is granted up to the standard rate of tax (currently 20%), subject to certain limitations outlined below, on the amount of the premium, that covers benefits being the reimbursement or discharge of health expenses (including non-routine dental expenses) within the meaning of section 469 TCA 1997 (“health expenses eligible for tax relief”).

A policy of health insurance may cover both health expenses eligible for tax relief and health expenses not eligible for tax relief, in this case a rate of tax relief less than the standard rate may apply. This rate is referred to as a “blended rate” and is based on the information provided to Revenue by the respective health insurance provider. The rate of tax relief applicable to a particular policy of health insurance is available from the respective health insurance provider.

The amount qualifying for tax relief is limited;

• in the case of an adult, the lesser of the eligible premium paid or €1,000 per annum, and,
• in the case of a child, the lesser of the eligible premium paid or €500 per annum. A child for all such policies is a child under 21 years of age in respect of whom a child premium has been paid.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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309. To ask the Minister for Finance if cross-Government measures will be introduced to reduce the sale of farm land to non-farming interests, and particularly large-scale businesses, with specific reference to the need to support small farm holders who may wish to buy neighbouring farm land for farming purposes when such options arise; and if he will make a statement on the matter. [3560/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that there are a number of tax reliefs which support farmers who wish to acquire land for the purpose of their farming trade. These include reliefs from both Capital Gains Tax (CGT)and Stamp Duty.

Capital Gains Tax

Section 604B of the Taxes Consolidation Act 1997 (TCA 1997) provides relief from CGT in respect of gains arising on transactions undertaken to achieve farm restructuring. The purpose of farm restructuring is to make an individual’s farm more efficient and to improve the operation and overall viability of the farm. This can be done by selling, purchasing or the exchange of farmland to bring the land closer together. The relief apples to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2025, where Teagasc has certified that the sale, purchase or exchange of agricultural land was made for farm restructuring purposes.

The initial sale or purchase, or the exchange, must occur in the period outlined above and the subsequent sale or purchase must occur within 24 months of that initial sale or purchase. Full relief from CGT will be given where the consideration for the purchase or exchange of agricultural land is equal to or exceeds the consideration for the sale or the other land that is exchanged. Where the consideration for the purchase or exchange is less than the consideration for the land that is sold or the other land that is exchanged, relief will be given in the same proportion that the consideration for the land that is purchased or exchanged bears to the consideration for the land that is sold or the other land that is exchanged.

A prerequisite to any disposal and acquisition of agricultural land qualifying for this relief is that an application for a farm restructuring certificate is made to Teagasc; that Teagasc grants such a certificate and that the certificate has not been withdrawn.

Further information regarding farm restructuring relief is available on the Revenue website at: www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/farm-restructuring-relief.aspx

Stamp Duty

Section 81C of the Stamp Duties Consolidation Act (SDCA) 1999 provides Stamp Duty relief to farmers who wish to consolidate fragmented farm holdings. The relief applies where farm holdings are consolidated by way of linked sales and purchases of land and where land is transferred as a gift or by way of exchange, where the purchase and the sale occur within 24 months of each other.

Where the relief applies, Stamp Duty at a reduced rate of 1% (instead of 7.5%) applies to the excess of the value of the land acquired over the value of the land disposed of. The relief is only available to a ‘farmer’ (or in the case of joint owners, one must be a farmer) who spends not less than 50 per cent of their normal working time farming and it is not available to non-farming interests.

There are a number of conditions which must be satisfied in order to qualify for the relief, in particular:

• Teagasc must issue a certificate stating that a sale and purchase or an exchange of farmland was made for farm consolidation purposes,
• The conveyance must contain a certificate that the relief applies,
• The land must be farmed by the purchaser, and
• In order to avoid a clawback of the relief, the land must be retained for five years.

• is in writing or evidenced in writing,
• is for a definite term of 5 years or more, and
• is made on an arm’s length basis between one or more qualifying lessors and one or more qualifying lessees.