Danny Healy-Rae
Question:203. Deputy Danny Healy-Rae asked the Minister for Finance if the 90% agricultural relief in relation to agriculture relief from CAT will be retained; and if he will make a statement on the matter. [31048/20]
View answerTuesday, 20 October 2020
Questions (203)
Written answers
CAT Agricultural relief allows the value of agricultural assets inherited (including farmland, buildings, stock) to be reduced by 90% of its value for the calculation of the CAT liability.
In order to qualify for the relief, certain conditions must be met, including the following:
1. At least 80% of the total assets held by the beneficiary after receiving the gift or inheritance must be agricultural assets.
2. The beneficiary must retain ownership for six years.
3. An additional condition was introduced in Finance Act 2014, the active farmer test, to ensure that the relief is targeted at genuine, active farmers.
The Active Farmer Test provides that the beneficiary must:
- Hold a relevant farming qualification, or achieve the qualification within 4 years of inheritance and farm the land for at least six years following inheritance, or
- Spend at least 50% of their time farming agricultural property commercially and farm the land for at least six years, or
- Lease the whole of the agricultural property for at least six years to an individual who satisfies either of the above two tests.
I recognise that CAT Agricultural Relief is a key relief in ensuring the inter-generational transfer of farm assets and farm succession planning. Currently, there are no plans to adjust the operation of this relief.