The Chairman of the ICMSA Taxation Committee, Mr. Lorcan McCabe, has stated that although Finance Bill 2012 provided for a number of welcome incentives announced in Budget 2012, he believed it was a missed opportunity in terms of addressing some anomalies in the taxation system that weren’t addressed in Budget 2012.
While Mr Mc Cabe welcomed the fact that Minister Noonan exempted from Capital Gains Tax those compensation payments to turf cutters for giving up the right to cut turf in Special Areas of Conservation, he observed that a similar exemption should be extended to individuals wishing to purchase land close to their holdings in order to consolidate their farm enterprise.
He stated that current Government policy is effectively penalizing any farmer wishing to consolidate his/her holdings in order to grow and expand their business.
ICMSA believes that Capital Gains Tax Rollover Relief should be introduced on a limited basis to allow for farm consolidation and parcel swaps for individuals wishing to expand their enterprise.
ICMSA believes that it is crucial that full-time farmers wishing to enlarge their holding to grow their farm business into a viable unit must be allowed to do so with the minimum application of Stamp Duty and he expressed his disappointment that the Finance Bill did not reintroduce Farm Consolidation Stamp Duty Relief.