Paul Kehoe (Wexford, Fine Gael)
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117. To ask the Minister for Finance if he will address a matter (details supplied) regarding the transfer of agricultural land; and if he will make a statement on the matter. [43778/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for agricultural relief. The relief takes the form of a 90% reduction in the taxable value of gifted or inherited agricultural property.

To qualify for the relief, the person taking the gift or inheritance (the 'beneficiary') of the agricultural property must first qualify as a 'farmer' for the purpose of section 89 CATCA 2003. This means that a beneficiary's agricultural property must comprise at least 80% by gross market value of the beneficiary's total property at a particular date.

In addition, for gifts and inheritances taken on or after 1 January 2015, a beneficiary, or a lessee where the beneficiary leases the agricultural land, must actually farm the land on a commercial basis for at least half of his or her normal working time for a period of at least 6 years after receiving the gift or inheritance. There are no restrictions with regard to the relationship between a beneficiary and a lessee where the agricultural land is leased.

I am further advised by Revenue that while the general position is as set out above, it is not their practice to give a definitive answer in respect of a hypothetical scenario such as that set out in the question. The correct tax treatment of the transfer of land between parties can be complex and varies according to the circumstances of the parties involved. The parties involved should either present full details of the proposed transaction to Revenue or seek independent professional advice if they wish to have certainty in his matter.