Martin Mansergh (Tipperary South, Fianna Fail)

This section corrects unintentional drafting errors in sections 89(4), 102A(2) and 104(3) of the Capital Acquisitions Tax Consolidation Act 2003. Section 89(4) of the Act provides for a clawback of agricultural relief where agricultural property is disposed of within six years of acquiring a gift or an inheritance and is not replaced within one year of the disposal by other agricultural property.

Section 102A(2) provides for a clawback of agricultural and business relief in respect of the development value of development land where that land is disposed of after six years of acquiring a gift or an inheritance and within ten years of that date. Section 104(3) provides for a clawback of the CGT credit allowed against CAT where the property in respect of which the credit was given is disposed of within two years of acquiring a gift or an inheritance.

The section ensures that the clawback in sections 89(4) and 104(3) will apply where a disposal takes place on the date of the gift or inheritance. The section also ensures that the clawback of agricultural and business relief in respect of the development value of development land provided for in section 102A(2) will apply where such land is disposed of on the sixth anniversary of the date of the gift or the inheritance. The section applies to gifts and inheritances taken on or after 21 January 2011.

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