The 2009 windfall tax rate of 80% feared by landowners has proved a damp squib so far.
It applies to the portion of the profit or gain on a disposal of land which is attributable to a rezoning.
The tax is payable where both the rezoning and the disposal of land giving rise to the windfall happen after Oct 30, 2009 (or after Feb 4, 2010, in the case of a “material contravention” decision by a local authority).
Finance Minister Michael Noonan has revealed there is no record to date of any profits of gains subject to the windfall tax having been declared on tax returns.
He said this reflects the small number of relevant planning decisions since the windfall tax was introduced, and that in the current market landowners may not make a gain on a disposal of development land.
In 2010, IFA president John Bryan welcomed an exemption from the 80% tax for the sale of one-off sites of less than one acre and €250,000 in value.
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