Ruairí Quinn
Question:109 Mr. Quinn asked the Minister for Finance if he will outline any proposed changes in the inheritance tax for farmers in 1992, and if he will make a statement on the matter.
Written Answers. - Inheritance Tax.
There are no plans to change the tax treatment of either the inheritance or lifetime transfer of farms in 1992. However, in the course of the Committee Stage of the current Finance Bill, I indicated that the question of the tax treatment of the lifetime transfer of agricultural property would be studied prior to the 1993 Budget. In the case of such life-time transfers, there could be a liability to both gift tax and stamp duty. The study will examine whether current tax arrangements regarding lifetime transfers are a disincentive for the life-time transfers of farms, and thus an incentive for delaying farm transfer until the death of a farmer. As indicated in the Programme for Economic and Social Progress, the Government considers that the early transfer of farms to young, trained farmers is required for efficiency and necessary structural changes in the farming sector. The study will bear these specific, targeted objectives in mind, as well as the ongoing need to preserve revenues from capital taxation.