€3m limit worth considering in Agricultural Relief changes

As reported on our front page last week, Minister Michael Noonan is to re-examine his proposed changes to Agricultural Relief, which is the main tax relief available on the transfer of agricultural property.

Agricultural Relief allows a 90% reduction in the value of assets, when calculating any applicable gift or inheritance tax (called Capital Acquisitions Tax, or CAT for short).

The proposed amendment to the CAT rules, arising from Budget 2015, was to restrict Agricultural Relief to cases where the recipient either satisfied the condition of being an “active farmer” for the six years after transfer, or alternatively leased out their land for six years after transfer.