Niall Collins (Limerick County, Fianna Fail)
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288. To ask the Minister for Finance for an update on a matter (details supplied); and if he will make a statement on the matter. [44881/24]

Jack Chambers (Dublin West, Fianna Fail)
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Sections 100 and 101 of the Finance Bill 2024 (as initiated) provide for the introduction of a revised form of relief from Capital Acquisitions Tax (CAT) for gifts and inheritances of agricultural property where certain conditions are met.

I will bring an amendment at Committee stage of the Finance Bill to provide that these provisions will be subject to a commencement order. Subject to the enactment of the Bill and commencement of these provisions, the revised agricultural relief will be provided for in a new section 89A of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003. It will replace the existing agricultural relief that is provided for in section 89 of the CATCA 2003.

The revised agricultural relief will differ from the existing agricultural relief in a number of respects.

A key change is the proposed introduction of two additional conditions, which relate to the ownership and use of the agricultural property prior to the date of the gift or inheritance.

The first condition is that the person from whom the beneficiary takes the gift or inheritance (the “disponer”) must have owned the agricultural property for a minimum period of 6 years prior to the date of the gift or inheritance.

The second condition is that the agricultural property must have been used for the purposes of farming by the disponer or a person to whom the property was leased in the 6 years prior to the date of the gift or inheritance.

These sections will be subject to a ministerial commencement order. This will allow time for further engagement and consultation with stakeholders, and ensure that there are no unintended consequences in relation to this measure, which is targeted at transfers of agricultural property from one generation of farmers to the next.

I can confirm that no changes are proposed in relation to the categories of agricultural property that qualify for relief. Accordingly, as is the case with respect to the existing relief, the revised relief will be available in respect of a farmhouse provided it is proportionate in size and character to the requirements of the farming activities subject to the qualifying conditions of the relief being met.

Further information in relation to the application of the existing agricultural relief is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part11.pdf

I am advised that Revenue will be publishing detailed guidance on the operation of the revised relief, including examples, once the provisions come into operation.