Dáil Éireann Debate, Tuesday - 26 September 2023
189. Deputy Paul Kehoe asked the Minister for Finance if there are any circumstances by which a rebate of capital gains tax is available (details supplied) when not eligible for farm restructuring relief; and if he will make a statement on the matter. [41440/23]
View answerIn general, capital gains tax (CGT) is chargeable on a gain arising on the disposal of an asset, including agricultural land, at the rate of 33%. The first €1,270 of chargeable gains of an individual in any year are exempt from CGT.
Section 604B of the Taxes Consolidation Act 1997 provides relief from CGT in respect of gains arising on transactions undertaken to achieve farm restructuring. The relief apples to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2025, where Teagasc has certified that the sale, purchase or exchange of agricultural land was made for farm restructuring purposes.
The initial sale or purchase, or the exchange, must occur in the period outlined above and the subsequent sale or purchase must occur within 24 months of that initial sale or purchase. Full relief from CGT will be given where the consideration for the purchase or exchange of agricultural land is equal to or exceeds the consideration for the sale or the other land that is exchanged. Where the consideration for the purchase or exchange is less than the consideration for the land that is sold or the other land that is exchanged, relief will be given in the same proportion that the consideration for the land that is purchased or exchanged bears to the consideration for the land that is sold or the other land that is exchanged.
A prerequisite to any disposal and acquisition of agricultural land qualifying for this relief is that an application for a farm restructuring certificate is made to Teagasc; that Teagasc grants such a certificate and that the certificate has not been withdrawn. A farm restructuring certificate will not be issued where the subsequent sale or purchase of agricultural land takes place more than 24 months after the initial sale or purchase of such land.
While the availability of the relief depends on the facts and circumstances of each case, the relief does not apply to agricultural land where Teagasc has not issued a farm restructuring certificate. Further information regarding farm restructuring relief is available on the Revenue website at: revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/farm-restructuring-relief.aspx.
