Tax Code

Thursday, 4 July 2024

Questions (399, 400)

Michael Healy-Rae

Question:

399. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine to review the capital acquisitions tax (details supplied); and if he will make a statement on the matter. [28751/24]

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Michael Healy-Rae

Question:

400. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine his views on certain aspects of the capital acquisitions tax (details supplied); and if he will make a statement on the matter. [28752/24]

View answer

Written answers

Minister for Agriculture, Food and the Marine

I propose to take Questions Nos. 399 and 400 together.

Taxation is the responsibility of the Minister for Finance. However, both our departments work closely to ensure it is consistent with government priorities for the agri-food sector.

In this regard, we have worked together to ensure the current reliefs referred to reflect the overarching state aid requirements as set out in the current agricultural block exemption regulation (2022/2472). This includes the thresholds applicable to Capital Acquisitions Tax relief, particularly Agricultural Relief.

Agricultural relief has been available from gift and inheritance tax since the introduction of Capital Acquisition Tax (CAT) in 1976. The purpose of this relief is to facilitate succession and the intergenerational transfer of farm enterprises. It operates by charging the tax on a reduced market value (referred to as ‘agricultural value’) of the particular agricultural property, and market value is reduced by 90%.

I will continue to work with the Minister for Finance and relevant stakeholders to ensure that the national tax strategy aligns, where possible, with the needs of the agri-food sector and wider society.

Question No. 400 answered with Question No. 399.