Vol. 402 No. 5
62 Mr. Hogan asked the Minister for Finance the conditions that are applied by the Revenue Commissioners in respect of capital acquisitions tax in relation to the transfer of property to a nephew or niece, with particular reference to the 15-hour and 24-hour rules; and if he will make a statement on the matter.
I have been advised by the Revenue Commissioners that the relevant legislation is contained in section 83, Finance Act, 1989. Broadly speaking, a nephew or niece is treated as a child of an uncle or aunt in any case where the nephew or niece has worked substantially on a full-time basis for the uncle or aunt for the relevant five year period. In normal cases, at least 24 hours work per week is required of the nephew or niece. Where, however, the business, including the business of farming, is small and run solely by the uncle or aunt, by any spouse of the uncle or aunt and by the nephew or niece of the uncle or aunt, then the requirement of 24 hours work per week is reduced to 15 hours. In either event, reasonable periods of annual or sick leave are allowed for.
I might add that any decision by the Revenue Commissioners to refuse the relief contained in this provision is subject to a right of appeal by the nephew or niece to the appeal commissioners.
