Brendan Griffin (Kerry South, Fine Gael)
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171. To ask the Minister for Finance if the capital acquisitions tax relief in respect of agricultural land will be extended to farmers in disadvantaged areas who have to supplement their income outside of the farm; and if he will make a statement on the matter. [46833/14]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that in applying the agricultural relief provisions of Section 89 of the Capital Acquisitions Tax Consolidation Act 2003 (including that provision as currently being amended in Finance Bill 2014)  a farmer who has off-farm employment will not be refused  relief if he or she is either:

- A farmer with an agricultural qualification or 

- A farmer who does not have an agricultural qualification but who spends not less than 50% of his or her normal working time farming.

In either case the farmer must farm the land on a commercial basis and with a view to the realisation of profits from the land.

For the purposes of the 50% test Revenue will accept that "normal working time" (including  both on-farm and off-farm work) approximates to 40 hours per week so that, if a farmer works for 20 hours a week on average on the farm, the 50% test will be regarded as satisfied.  In this regard also, the Revenue Commissioners say that where a farmer's "normal working time" is not quite 40 hours a week but he or she can show that the land is being farmed on a commercial basis and with a view to the realisation of profits from the land, the relief will not be refused.