Michael Healy-Rae
Question:286. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding agricultural leave; and if he will make a statement on the matter. [36141/15]
View answerTuesday, 20 October 2015
Questions (286)
Written answers
I assume that the Deputy is referring to Capital Acquisitions Tax (CAT) agricultural relief. The importance of agriculture in the Irish economy is well recognised. In this context, a specific relief from CAT is provided for gifts and inheritances of agricultural property once certain conditions are satisfied. This relief is known as Agricultural Relief. The aim of the relief is to ensure the active use of agricultural land. The relief takes the form of a reduction in the market value of the agricultural property by 90% for the purposes of establishing whether or not a CAT liability arises on the gift or inheritance and that relief remains in place.
The tax-free thresholds above which CAT applies were reduced considerably over the period of the financial crisis and at a time of falling asset prices in order to help maintain the yield from capital taxes. Asset prices, particularly property prices, have been recovering strongly although not to the levels experienced during the boom. In recognition of this recovery, I announced in my Budget Speech on Tuesday last an increase in the Group A tax-free threshold, which broadly applies to transfers between parents and their children, from €225,000 to €280,000.