Willie Penrose (Longford-Westmeath, Labour)
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533. To ask the Minister for Agriculture, Food and the Marine the exemptions and or reliefs available to a person who is 42 years of age and is returning home to inherit a farm from their elderly parent; the assistance available in this regard; and if he will make a statement on the matter. [25950/14]

Simon Coveney (Cork South Central, Fine Gael)
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While taxation policy is primarily the responsibility of the Minister for Finance, I have on-going contact with him to ensure that tax policy reflects the Government’s commitment to agriculture and, in particular, to the objectives of smart, green, growth outlined in the Food Harvest 2020 strategy. There are two main measures which facilitate the inter-generational transfers of farms by relieving the capital tax burden for both the transferor and the transferee: retirement Relief’ from Capital Gains Tax (CGT) is available where an individual, who is at least 55 years, disposes of the whole or part of their qualifying assets, either by sale or gift. Although the relief is commonly known as retirement relief, a claimant does not have to retire in order to qualify. For parent to child transfers, an individual aged 55 to 65 years can claim relief on the full consideration amount without limit. Relief for those aged 66 years or more can be claimed on the consideration amount up to a limit of €3 million. Agricultural Relief from Capital Acquisition Tax (CAT) operates by reducing the market value of ‘agricultural property’ by 90%, so that the tax payable is calculated on an amount substantially less than the market value. It is available to those qualifying as a ‘farmer’ at the valuation date, i.e. an individual whose ‘agricultural property’, after the gift or inheritance, is at least 80% of their total assets. There are other measures that assist inter-generational transfers: stamp Duty Consanguinity Relief on Non-residential Transfers’ provides for a reduced stamp duty rate of 1% applicable to transfers between certain close relations. It is currently available for a three year period until 31 December 2014; CGT / CAT ‘same event relief’ applies where both taxes are payable on the same event (for example, a gift of land by a parent to a child); any CGT paid by the parent can be used by the child as a credit against their CAT liability.

A review of tax measures in the farming sector, a joint initiative between my Department and the Department of Finance, was announced in Budget 2014 and is now underway.