Michael Healy-Rae (Kerry, Independent)
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301. To ask the Minister for Finance views on a matter regarding tax relief (details supplied); and if he will make a statement on the matter. [48010/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for clarifying that his question relates to Capital Gains Tax retirement relief and Capital Acquisitions Tax agricultural relief.

Prior to Finance Act 2017, agricultural land which was leased for solar panels was not classified as qualifying agricultural property for the purposes of Capital Gains Tax retirement relief or agricultural relief from Capital Acquisitions Tax.

Following a review announced in Budget 2018, and in recognition of the then Government's commitment to facilitate the development of solar energy projects in Ireland, a revised approach was introduced whereby it is now possible for land leased for the installation of solar panels to be classified as qualifying agricultural property under certain conditions.

A key condition is that the total area of land under lease and on which solar panels are installed does not exceed 50% of the total area of agricultural land. This condition allows solar projects to provide a complimentary relationship to the majority of the land which is preserved for active farming. Removal of this 50% limit or extension of this policy to larger energy projects other than solar risks losing sight of the fundamental principle which underpins our policy in relation to these reliefs.

It is important to note that CGT retirement relief is not limited to farming. While wind turbines are not classified as agricultural property for the purpose of the relief, they may be considered as qualifying assets for this relief if certain conditions are met.

Any further changes in this policy must be carefully weighed up against the original intention of the reliefs in question. It remains important that the active farming of land be prioritised in line with the original policy intent of the reliefs.