Brendan Griffin (Kerry South, Fine Gael)
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63. To ask the Minister for Finance if there are any circumstances where capital acquisitions agriculture relief will be extended to a person who earns marginally in excess of the income threshold; and if he will make a statement on the matter. [15908/15]

Michael Noonan (Limerick City, Fine Gael)
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Capital Acquisitions Tax (CAT) is the overall name for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or, inherited by, the beneficiary of the gift or inheritance.

I am informed by the Revenue Commissioners that, for the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.

There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A: tax free threshold €225,000applies where the beneficiary is a child (including adopted child, stepchild, and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: tax free threshold €30,150applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: tax free threshold €15,075applies in all other cases.

The importance of agriculture in the Irish economy is well recognised. In this context, a specific relief from CAT is provided for gifts and inheritances of agricultural property once certain conditions are satisfied. This relief is known as Agricultural Relief. The aim of the relief is to ensure the active use of agricultural land. The relief takes the form of a reduction in the market value of the agricultural property by 90% for the purposes of establishing whether or not a CAT liability arises on the gift or inheritance.

In order to qualify for Agricultural Relief, the beneficiary of the gift or inheritance must satisfy the following conditions:

- 80% of the beneficiary's total overall assets must consist of agricultural property by value after receiving the gift or inheritance.

- The beneficiary of the gift or inheritance must also either have an agricultural qualification (a qualification of the kind listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999) or, alternatively, must farm the agricultural property on a commercial basis for not less than 50% of his or her normal working time.

- The beneficiary must farm the agricultural property for a period of not less than 6 years after receiving the gift or inheritance or lease the agricultural property for a period of not less than 6 years, subject to the lease and the lessee also satisfying the conditions of the relief.

The income of the beneficiary is not relevant to CAT Agricultural Relief and there is no income threshold to be met by the beneficiary in order to avail of the relief.