Dáil Éireann Debate, Wednesday - 20 April 2016
119. Deputy Michael Healy-Rae asked the Minister for Finance the status of the case of persons (details supplied) in County Kerry who would like clarification on consolidating their farms without incurring capital gains tax; and if he will make a statement on the matter. [7805/16]
View answerI am informed by the Revenue Commissioners that section 599 of the Taxes Consolidation Act 1997 gives relief from Capital Gains Tax for the disposal by a person, who has attained the age of 55, of a farm to his/her children.
There is provision for a clawback of the relief where the assets transferred to the children are subsequently disposed of by the children within 6 years of the date of transfer. In any such case, the capital gains tax which would have been charged on the transferor (if the relief had not applied) is assessed and charged on the children, in addition to the tax on any gain made by the children on his/her disposal of the assets.
The issues around whether the beneficiaries of the gifted land in this case would qualify for the farm restructuring relief provided for in section 604B of the Taxes Consolidation Act 1997, in the circumstances outlined in the details supplied by the Deputy, are being examined by the Revenue Commissioners. I will write to the Deputy again in this matter shortly when Revenue's considerations are completed.
