Vol. 421 No. 8
76 Mr. Hogan asked the Minister for Finance if his attention has been drawn to the fact that a young farmer does not benefit from the favoured nephew status under a trust will and that all stock relief is also clawed back; his views on whether this is victimisation of young farming families at a traumatic time of accidental death; if he will seek to make amendments to the next Finance Bill to deal with this situation; and if he will make a statement on the matter.
A nephew or niece who meets the criteria for "favoured" nephew or niece treatment, and who receives a farm under a trust will, will qualify for the exemption threshold for "favoured" nephews and nieces under the Capital Acquisition tax code.
Section 33 (5) of the Finance Act, 1984, provides for relief from stock relief clawback where the trade of farming is transferred by a person, either by settlement or will, to a spouse or a child (including favourite niece/nephew) of the person. The transferor (or, in the case of death, his legal personal representative) and the successor must make an election in the matter within two years of the transfer and the trade must pass in its entirety to the successor. The legislation does not provide for any relief where the trade of farming passes to a trust in favour of minor children. The points raised by the Deputy in regard to this latter type of case have, however, been noted and will be examined.
