Revenue have announced a change as to how CPOs can potentially be treated. The clarification widens the criteria to include the holding of land which is particulary good news for farmers who have land subject to Compulsory Purchase Order’s (CPOs). The change now allows a Capital Gains Tax Rate of 10% (Entrepreneurial Relief) to apply for CPOs once specific conditions are met.
Commenting on the clarification Declan McEvoy, Head of Tax, IFAC Accountants states, “This is welcome news for farmers who can now qualify for relief on CPO’s provided they meet the ownership/usage conditions. Origninally this exclusion was designed to prevent relief applying where development land was held by an individual, company or partnership where there is no business activity”.
Declan, a native of Portlaoise, leads IFAC’s Tax team which specialises in advising clients in the Agri Business Sector.
If you have any queries or would like to confidentially discuss, please contact the National Tax team on (01) 4551036 or email firstname.lastname@example.org