Budget change of heart unlikely over heavy tax on CPO despite fury

IT’S bad enough to be put out of business by the Government, without being charged a heavy tax for this disservice.

That's the situation of the farmers worst hit by Compulsory Purchase Orders. They wait in hope that next week's Budget will reverse the removal of roll-over relief from the CPO system. But the prospects are not looking very bright for a change of heart by Finance Minister, Charlie McCreevy, who brought about this major change a year ago.

Improved compensation was negotiated for farmers who lose land to CPOs for national road development, but they didn't expect the sting in the tail a 20% tax clawback in the form of removal of roll-over relief, which had allowed those farmers a limited period during which to re-invest the CPO compensation money in replacement land, without being liable for Capital Gains Tax.