Written answers

Tuesday, 17 November 2015

Department of Agriculture, Food and the Marine

Tax Exemptions

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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252. To ask the Minister for Agriculture, Food and the Marine if a person (details supplied) can avail of the 90% tax exemption if the family farm is signed over to that person and is then in that person's name. [39993/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Taxation policy is primarily the responsibility of the Minister for Finance. However I have on-going contact with Minister Noonan to ensure that taxation policy reflects the Government’s commitment to agriculture, as evidenced by our cooperation on the ‘Agri-taxation Review’ and its implementation over the last two Budgets. Assisting succession and the transfer of farms has been a central part of agri-taxation policy for many years and is one of the specific policy objectives identified by the Agri-taxation Review.

Agricultural Relief from Capital Acquisition Tax is vitally important in this regard. It is available in respect of gifts and inheritances of ‘agricultural property’, subject to certain conditions being satisfied. The relief operates by reducing the market value of the agricultural property by 90%, so that gift or inheritance tax is calculated on an amount known as the ‘agricultural value’. To qualify for agricultural relief, at the valuation date the person receiving the gift or inheritance must be a farmer, which for the purposes of the relief is defined as someone in respect of whom at least 80% of their assets, after taking a gift or inheritance, consists of agricultural property. Furthermore the beneficiary must, commencing on the valuation date, farm the agricultural property for a period of not less than 6 years or lease it out for a period of not less than 6 years. In addition, the beneficiary (or the lessee, where relevant) must:

- Have an agricultural qualification (a qualification of the kind listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999) or achieve such a qualification within a period of 4 years commencing on the date of the gift or inheritance, or,

- Farm the agricultural property for not less than 50% of their ‘normal working time’.

It is my Department’s policy not to comment on individual cases as the administration of the taxation system is a matter for the Office of the Revenue Commissioners. Individuals can either speak directly with Revenue or seek independent professional advice on their own particular circumstances.

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