Catherine Murphy (Kildare North, Independent)
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235. To ask the Minister for Finance in respect of existing business and agricultural reliefs on capital acquisitions tax, his views on reducing the discount given on market value before the tax is ordinarily calculated from the present 90% as a revenue-generating measure; and if he will make a statement on the matter. [38548/13]

Michael Noonan (Limerick City, Fine Gael)
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CAT agricultural relief takes the form of a reduction in the market value of the agricultural property - currently by 90% - for the purposes of establishing the appropriate group tax-free thresholds and determining whether a CAT liability arises on a transfer. In order to qualify for CAT agricultural relief, an individual receiving a gift or inheritance of agricultural property must qualify as a farmer. For the purpose of the relief, a farmer is an individual at least 80% of whose assets constitute agricultural property. CAT agricultural relief has increased over the years from an original reduction of 50% when CAT was introduced in 1975. The relief will be withdrawn if the agricultural property is sold or compulsorily acquired within six years of or, in certain circumstances, ten years of the gift or inheritance unless the proceeds are reinvested in other agricultural property. CAT business relief takes the form of a reduction in the taxable value of the relevant business property - currently by 90% - for the purposes of establishing the appropriate group tax-free thresholds and determining whether or not a CAT liability arises on a transfer. The relief will be withdrawn if within six years of the gift or inheritance the assets cease to qualify as a relevant business property, unless this is because of bankruptcy or if the company is wound up bona fide due to insolvency. The relief will also be withdrawn if within six years of the gift or inheritance, the business or any business that replaced it is sold, redeemed or compulsorily acquired unless the business is replaced within one year by other relevant business property. Preparations for Budget 2014 and the consequent Finance Bill are ongoing. It would not be appropriate for me to comment on what changes, if any, are being considered in this relief or any other tax relief.