Matt Carthy
Ceist:192. Deputy Matt Carthy asked the Minister for Finance his proposals with regard to agricultural relief capital acquisition tax; and if he will make a statement on the matter. [48073/21]
Amharc ar fhreagraTuesday, 5 October 2021
Ceisteanna (192)
Freagraí scríofa
As the Deputy may be aware, the Capital Acquisitions Tax (CAT) Agricultural Relief operates by reducing the market value of 'agricultural property' (including farmland, buildings, stock) by 90%, so that gift or inheritance tax is calculated on an amount - known as the 'agricultural value' - which is substantially less than the market value.
To qualify for agricultural relief, 80% of the beneficiary’s assets, after having received the gift/inheritance, must consist of qualifying agricultural assets. The beneficiary must also be an active farmer or lease the land to one. Agricultural Relief has been available for gift and inheritance tax since the introduction of Capital Acquisitions Tax in 1976.
I believe Agricultural Relief is a vital measure to ensure the ongoing viability of family farms that pass from one generation to another and any reduction in scale of relief could have a negative impact on the development and growth of farming businesses. I also believe it is a fair and valuable relief to the beneficiaries. I have no plans to adjust Agricultural Relief at this time.