Vol. 491 No. 6
161 Mr. Kirk asked the Minister for Finance if, under capital gains tax legislation, a farmer over 55 years who has owned the property for ten years or more is exempt from capital against tax if he disposes of a portion of his farm for development purposes and the remainder for agricultural use where the combined price is less than £250,000; and if he will make a statement on the matter. [12919/98]
Capital gains tax retirement relief is a relief given to an individual on the disposal of all or part of the qualifying business assets, provided that the individual is aged 55 years or more at the date of disposal and the other conditions are satisfied. Where all the conditions are met, the relief takes the form of a relief on the tax, CGT, payable on gains accruing on the disposal of the qualifying assets. If the disposal is made to a child of the individual owner, then there is no limit on the proceeds of the disposal, or gain, which may qualify for full relief. Where the disposal is made to a person other than a child of the individual owner, then full relief is available where the aggregate sale proceeds of the disposal does not exceed £250,000. For the purpose of the relief, qualifying assets include chargeable business assets, which are assets used for the purpose of farming as well as other business activities.
Given that all the relevant conditions are met, the individual would be able to avail of the retirement relief provisions contained in the capital gains tax code for the disposal of his farm, regardless of the subsequent use made of the land.
