Thursday, 22 March 2012
Finance Bill 2012 (Certified Money Bill): Committee and Remaining Stages
Michael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
This section amends section 89 of the Capital Acquisitions Tax Consolidation Act 2003. That section provides that only 10% of the value of agricultural property taken by a farmer as defined is taken into account in calculating gift or inheritance tax in respect of such property. A farmer for this purpose means an individual at least 80% of whose assets consist of agricultural property after taking the gift or inheritance. Debts and encumbrances are allowable in arriving at the value of an individual’s off-farm dwelling in deciding whether an individual qualifies as a farmer. The amendment ensures that a loan secured on an off-farm dwelling will not be allowed as a deduction unless it is used for the purchase, improvement or repair of the dwelling. The amendment also removes the condition that an individual must be resident in the State for three years after the date of the gift or the inheritance in order to comply with EU law. The amendment applies to gifts and inheritance taken on or after 8 February 2012.