Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

To qualify under sections 598 and 599 of the Taxes Consolidation Act 1997, a relevant individual must have owned and used the qualifying asset - farmland, in this case - for a minimum of ten years prior to disposal. The provision allows for the aggregation of periods of ownership of the qualifying asset by each spouse or civil partner for the purposes of the ten-year ownership test. It does not, however, extend and aggregate the use of the assets in the same manner. The exception to this is in the case where one of the spouses or civil partners has died.

I am aware that the issue to which the Deputy's amendment relates was raised in the context of the 2014 review to which he referred. Nevertheless, I will make a number of points in this regard. First, the aim of the relief is to encourage timely disposal of a business or farm to the next generation. Second, the relief applies to an individual and, therefore, where both spouses meet the criteria, both can benefit from the relief separately, thereby doubling the relief available to the couple. Where only one spouse qualifies, that person will still be able to avail of the relief. Third, and most important, this is not an anomaly. The inclusion of the usage requirement ensures that the individual qualifying for the relief is genuinely active in the farm or business. This is a fundamental requirement.

A provision allowing that in cases of joint ownership, both owners will be eligible for retirement relief if either is eligible could allow for tax avoidance and greatly expand the scope of the relief. This is because if the disposal is outside the family or the disposer is over the age of 66, there are limits to the proceeds or consideration on which relief can be claimed. If couples could both claim relief in cases where either of them qualifies, they could effectively double the relief available to them by putting their assets in joint names just before the transfer of the assets, even in cases where one spouse had never used the asset, that is, had not worked on the farm. It is for those reasons that I cannot accept the Deputies' amendment.