Dáil Éireann Debate, Wednesday - 29 June 2022
26. Deputy Matt Carthy asked the Minister for Finance the number of instances since 2017 in which a gift clawback has arisen as a result of farmer who has inherited or been gifted land and has placed such land jointly in the name of their spouse; the average tax intake as a result; and if he will make a statement on the matter. [34732/22]
View answerAssuming this relates to a clawback of agricultural relief claimed under Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003, on an inheritance or gift of land, I am advised by Revenue that it is not possible to furnish precise figures of the number of instances in which a gift clawback has arisen in these particular circumstances.
Section 89 provides for agricultural relief to be applied on the receipt of a gift or inheritance comprising agricultural property. The relief operates by charging Capital Acquisitions Tax (CAT) on a reduced market value of the particular agricultural property, which takes the form of a 90% reduction in the taxable value of gifted or inherited agricultural property.
However the Relief can be withdrawn or clawed back if any part of the property (other than crops, trees and underwood) is disposed of or compulsorily acquired within six years of receiving a gift or inheritance, and it is not replaced with other agricultural property.
In addition, where the date of the gift or inheritance and the valuation date are on or after 1 January 2015, relief may be withdrawn if the claimant no longer farms the property for at least 50% of their working hours, or does not farm the property on a commercial basis for at least six years from that date.
As agricultural relief may be clawed back where there is a disposal of any part of the agricultural property, relief could be clawed back where the claimant disposes of any part of his or her beneficial interest in the land to his or her spouse. However, it would not be clawed back where the land is simply placed jointly in the name of a spouse.
Revenue has published extensive guidance on the operation of Agricultural relief in respect of CAT on the Revenue website at www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/index.aspx, and also operates a CAT Helpline for anyone seeking further clarification/guidance. Contact details for the CAT Helpline are available on the Revenue website at
www.revenue.ie/en/contact-us/customer-service-contact/national-capital-acquisitions-tax-cat-unit.aspx
