Vol. 542 No. 5
267 Mr. Perry asked the Minister for Finance the changes in legislation that will be put in place in relation to the issue of business relief for capital acquisition tax on the transfer of family businesses involved in the operation of caravan parks; his views on whether legislation is a hindrance to the growth of the business; the steps he will take to address this matter; and if he will make a statement on the matter. [25020/01]
I am advised by the Revenue Commissioners that the existing position in relation to business relief in respect of CAT on the transfer of family businesses involved in the operation of caravan parks is as set out below.
The availability of relief depends on the particular facts in each case. Each case is approached by reference to the type of letting activity involved, i.e. how much of the letting relates to furnished caravans owned by the business and how much to pitch sites, that is a site for a caravan. As a general guideline, where a business's own furnished caravans account for at least half the total number of lettings the business will be accepted as primarily trading and therefore eligible for business relief, irrespective of the facilities provided. Conversely, where most of the lettings relate to pitch sites and facilities are restricted to the provision of electricity, water, toilets and a shop, business relief will be denied on the grounds that the business was mainly engaged in the exploitation of its property rights as opposed to carrying on a trade.
