Development land legalese

looksee

the new 20% rate for capital gains tax does not extend to disposals, which includes gifts, of development land which continues to be taxable at 40%. The fact that there is no planning permission or that the land is not even zoned for development does not necessarily mean it cannot be treated as 'development land' for the purposes of capital gains tax. Land is deemed to be development land where the consideration for the disposal, or the market value at the time of disposal, exceeds the current use-value of the land. 'Current use value' is the value which the land would have were it to be sterilised for material development.

Would anyone be able to translate the above, especially the bolded bit, into ordinary English please?

Victor

Farm land is typically worth €10,000-20,000 per acre (some more, some less).

http://www.daft.ie/dublin/commercial-property-for-sale/agricultural-farm-land-for-sale/brockey-glencullen-dublin-358836/ = €4,500 per acre

http://www.daft.ie/dublin/commercial-property-for-sale/agricultural-farm-land-for-sale/spring-hill-garristown-dublin-522061/ = €13,000 per acre

http://www.daft.ie/dublin/commercial-property-for-sale/agricultural-farm-land-for-sale/cromwell-hill-brittas-dublin-303356/ = €20,000 per acre

http://www.daft.ie/dublin/commercial-property-for-sale/agricultural-farm-land-for-sale/residential-farm-c-70-acres-283-ha-in-one-or-more-lots-woodtown-rathfarnham-dublin-550407/ = €26,000 per acre

This land: http://www.daft.ie/dublin/commercial-property-for-sale/agricultural-farm-land-for-sale/nethercross-donabate-dublin-536239/ is priced at €100,000 per acre. Conveniently, it is also the size of a housing site, even though it is being marketed as "Agricultural Land For Sale".

This is what is being targeted.

looksee

Thank you for that!