Doyle – Welcomes capital gains tax (CGT) exemption for new EU CAP payment arrangements

Fine Gael TD and Chairman of the Joint Committee on Agriculture Food and the Marine, Andrew Doyle, today (Thursday) welcomed the announcement by Minister for Finance, Michael Noonan regarding Capital Gains Tax (CGT) exemption for new EU CAP payment arrangements.

“A further testament to the Government’s commitment to the Agri- Farming sector, I am delighted that a resolution has been granted on behalf of the 6,446 lessor and 6,727 lessees who were affected as a result of the changes to the rules governing the “Basic Payment Scheme” which replaces the “Single Payment Scheme” under the new Common Agricultural Policy. I had previously written to Minister Noonan outlining the adverse effect on land mobility objectives as a consequence.

“By way of background, anyone who owns entitlements but did not claim any in 2013 as a result of having them leased to another party must now sell or dispose of their entitlements. Arising from this new ruling, the sale of these entitlements create a capital gain, thereby under the current taxation rules incurring a CGT liability.

“The measure introduced today by Minister Noonan is a sensible response to a matter that could have discouraged many farmers and may have inhibited the transfer of land to younger trained farmers. I believe making a provision in this case will send a positive signal to the farming and wider Agri sector highlighting that the Government is committed to addressing the needs of this very important industry.”