Site sales escape new 'windfall tax'
Published 09/02/2010 | 05:00
The exemption of one-off site sales from the new 'windfall tax' was confirmed last week in the Finance Bill.
It had been feared that the 80pc tax, which was introduced as part of the NAMA legislation, would penalise land owners selling one-off sites and those who had land taken under Compulsory Purchase Orders (CPO) for road or other development projects.
Following intense lobbying by farm organisations, Finance Minister Brian Lenihan indicated that the sale of sites would not be subject to the new tax.
This was confirmed in the Finance Act, with the amended legislation stating that the tax would not apply to the sale of one-off sites below an acre in size and €250,000 in value.
Declan McEvoy, of Irish Farm Accounts Co-operative (IFAC), said the exclusion of site sales from the legislation was a "positive development" and one that would be welcomed by farmers.
Mr McEvoy said it was still unclear whether the exemption applied to the sale of a single site by a land owner or to multiple sales.
Had site sales been subject to the tax, land owners could have faced bills of up to €76,000 where a 0.5ac site was priced at €100,000 and the agricultural value of the ground was set at €10,000/ac.
Farm organisations welcomed the decision but expressed disappointment that the rate of carbon tax on farm diesel remained unchanged.