Exemption to take effect

Michael Noonan has confirmed that the Finance Bill 2014, which will be published after October’s Budget, will give effect to the exemption from capital gains tax he announced last May for farmers who had been forced by the CAP reform to sell their entitlements to active farmers.

The finance minister told the Dáil: “While the CGT due on any chargeable gains arising from the disposal of farm payment entitlements made by May 15 would have to be paid in the normal course by December 15 , 2014, the Revenue Commissioners have indicated that they will not require such payments to be made, pending the passing of the Finance Bill and the coming into law of the relevant CGT amendments to be included in that bill.”

The exemption applies to chargeable gains from the disposal by the owners of payment entitlements under the single payment scheme, where all those entitlements were leased out in 2013, and where the owners were advised by the Department of Agriculture to transfer entitlements to an active farmer by May 15, 2014.