Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I move amendment No. 66:

In page 62, between lines 10 and 11, to insert the following:"43.Section 604B of the Principal Act is amended in subsection (1)(a) -

(a) by substituting the following for the definition of "agricultural land":

" 'agricultural land' means land used for the purposes of farming but does not include buildings on the land;",

and
(b) in the definition of "relevant period" by substituting "31 December 2016" for "31 December 2015".".

This amendment relates to section 43 of the Bill. That section amends section 604B of the Taxes Consolidation Act 1997, which grants relief from capital gains tax for farm restructuring where the first transaction in the restructuring, for example, the sale, purchase or exchange of farm land is carried out on or before 31 December 2015 and where the restructuring is completed within 24 months. The first restructuring transaction is extended to 31 December 2016 on foot of a recommendation of the agri-taxation review.
Currently, farm buildings can qualify for farm restructuring relief because they are included in the definition of "agricultural land" in section 604B, although farm houses and mansion houses are excluded unless they are derelict and unfit for human habitation. The purpose of this amendment is to ensure compliance of the relief with EU state aid requirements. The amendment provides that the relief will apply to land used for the purposes of farming but not buildings on that land. It is not anticipated that this amendment will impact significantly on the operation of the restructuring relief. I commend the amendment.