649BWindfall gains from rezonings: rate of charge.

(1) In this section—

“development land-use” means residential, commercial or industrial uses or a mixture of such uses;

“loss arising on rezoning” means a loss realised on or after 30 October 2009 on a disposal of land to the extent to which that loss is attributable solely to a decrease in the market value of the land arising on a rezoning, and which loss has not otherwise been effectively relieved;

“non-development land-use” means a land-use which is agricultural, open space, recreational or amenity use or a mixture of such uses;

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“rezoning” means a change in the zoning of land in a development plan or local area plan made or varied on or after 30 October 2009 under Part II of the Planning and Development Act 2000 from non-development land-uses to development land-uses or from one development land-use to another development land-use including a mixture of such uses.

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“relevant planning decision”, in relation to land and in accordance with the Planning and Development Act 2000 (in this definition referred to as the “Act of 2000”), means—

(a) a change in the zoning of land in a development plan or a local area plan made or varied under Part II of the Act of 2000 from non-development land-uses to development land-uses or from one development land-use to another development land-use including a mixture of such uses, or

(b) a decision to grant permission, in accordance with section 34(6) or 37(2) of the Act of 2000, for a development that would materially contravene a development plan;

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“windfall gain” means any increase in the market value of land which is attributable to ^[4]>rezoning^<[4][4]>a relevant planning decision^<[4].

(2) This section applies to a relevant disposal^[5]>, made on or after 30 October 2009,^<[5] where the disposal consists of land that—

(a) has been the subject of ^[6]>rezoning^<[6][6]>a relevant planning decision^<[6] since its acquisition by the person making the disposal,

(b) was acquired from a connected person and the acquisition cost for the purposes of the Capital Gains Tax Acts was other than market value, where the ^[7]>rezoning^<[7][7]>relevant planning decision^<[7] took place during the ownership period of either person, or

(c) was the subject of a sequence of transfers between connected persons, if the ^[8]>rezoning^<[8][8]>relevant planning decision^<[8] took place during the period between the date of disposal and the latest date at which the acquisition cost, at any step in the sequence, was market value.

(3) Notwithstanding section 28(3), the rate of capital gains tax in respect of a chargeable gain, being the lesser of the gain arising on the disposal and the windfall gain, accruing to a person on a relevant disposal to which this section applies shall be 80 per cent.

(4) This section shall not apply to a disposal of land to which subsection (2) relates where—

(a) the land is disposed of to an authority possessing compulsory purchasing powers, but only if the Revenue Commissioners are satisfied that the disposal would not have been made but for the exercise of those powers or the giving by the authority of formal notice of its intention to exercise those powers,^[9]>or^<[9]

(b) the disposal is a disposal by a company referred to in ^[10]>section 616(1)(g),^<[10][10]>section 616(1)(g), or^<[10]

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(c) the disposal is the disposal of a site of 0.4047 hectares or less whose market value at the date of disposal does not exceed €250,000 (notwithstanding that a planning authority may have granted permission in respect of that site in accordance with section 34(1) of the Planning and Development Act 2000), other than where the disposal by the person making it, or by a person connected with that person, forms part of a larger transaction or series of transactions,

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and, accordingly, the rate of capital gains tax in respect of a chargeable gain on a relevant disposal referred to in paragraphs (a) to (c) shall be the rate specified in section 28(3).

(5) Notwithstanding any provision to the contrary in the Capital Gains Tax Acts, any loss accruing on any disposal shall not be deducted from a chargeable gain to which this section applies except a loss arising on a ^[12]>rezoning^<[12][12]>relevant planning decision^<[12].

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(6) This section shall apply to relevant disposals made on or after 30 October 2009.

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(6) This section shall apply to relevant disposals made in the period beginning on 30 October 2009 and ending on 31 December 2014.

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