Just north of 2,000 farmers were the beneficiaries of €215 million last year.
Minister for Finance Michael Noonan revealed the details of the total amount in agricultural and business relief on capital acquisition tax for the transfer of a business recently in the Dáil. He also said that if the current relief was extended “from 90% to 100% [it] would be in the region of €7m in the case of Agricultural Relief and €4.3m in the case of Business Relief”.
The year before, 1581 farmers were granted €164.4 million, meaning the number of applicants jumped by about a quarter.
The details came in response to a question from Niall Collins, Fianna Fáil’s Limerick County TD.
Agricultural Relief gives a 90% reduction in the value of agricultural property for gift and inheritance tax, with the overriding condition being that the recipient must pass the “farmer test”, which is defined as having more than 80% of the value of their property in “agricultural property”, in order for agricultural relief to apply.
This tax relief applies to farm land and buildings, crops, trees and underwood, livestock, bloodstock as well as farm machinery.