Finance Act, 1995

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Amendment of section 19 (value of agricultural property) of Principal Act.

158.—(1) Section 19 of the Principal Act is hereby amended—

(a) in the definition of “agricultural value” in subsection (1) (inserted by the Finance Act, 1994 )—

(i) by the substitution of “50 per cent.” for “75 per cent.” in paragraph (a),

(ii) by the substitution of “50 per cent.” for “70 per cent.”, “30 per cent.” for “50 per cent.” and “£90,000” for “£150,000” in paragraph (b), and

(iii) by the substitution of “50 per cent.” for “70 per cent.”, “15 per cent.” for “35 per cent.” and “£45,000” for “£105,000” in paragraph (c),

and the said definition, as so amended, is set out in the Table to this section,

(b) in the definition of “farmer” in subsection (1), by the deletion of “and ordinarily resident”,

(c) by the substitution, in subsection (4) (inserted by the Finance Act, 1994 ), of “30 per cent.” for “50 per cent.”, “£90,000” for “£150,000” in both places where it occurs, “15 per cent.” for “35 per cent.” and “£45,000” for “£105,000” in both places where it occurs, and the said subsection, as so amended, is set out in the Table to this section, and

(d) by the insertion after paragraph (b) of subsection (5) of the following paragraph:

“(c) The agricultural value in relation to a gift or inheritance referred to in subsection (2) shall cease to be applicable to agricultural property, other than crops, trees or underwood, if the donee or successor is not resident in the State for any of the three years of assessment immediately following the year of assessment in which the valuation date falls.”.

(2) Paragraphs (a) and (c) of subsection (1) shall have effect in relation to gifts or inheritances taken on or after the 8th day of February, 1995, paragraph (b) shall have effect in relation to a gift or inheritance where the valuation date in relation to that gift or inheritance is on or after the 6th day of April, 1994, and paragraph (d) shall have effect in relation to gifts and inheritances taken on or after the date of the passing of this Act.

TABLE

“agricultural value” means—

(a) in the case of farm machinery, livestock and bloodstock, 50 per cent. of the market value of such property,

(b) in the case of a gift of agricultural property, other than farm machinery, livestock and bloodstock, 50 per cent. of the market value of the agricultural property comprised in the gift reduced by 30 per cent. of that market value or by a sum of £90,000, whichever is the lesser, and

(c) in the case of an inheritance of agricultural property, other than farm machinery, livestock and bloodstock, 50 per cent. of the market value of the agricultural property comprised in the inheritance reduced by 15 per cent. of that market value or by a sum of £45,000, whichever is the lesser;

(4) In relation to the deduction, in respect of agricultural property, of—

(a) in the case of a gift, 30 per cent. of its market value, or £90,000, whichever is the lesser, and

(b) in the case of an inheritance, 15 per cent. of its market value, or £45,000, whichever is the lesser,

the amount deductible shall not exceed £90,000 in the case of a gift and £45,000 in the case of an inheritance, in respect of the aggregate of—

(i) all taxable gifts taken on or after the 28th day of February, 1969, and

(ii) all taxable inheritances taken on or after the 1st day of April, 1975, which consist in whole or in part of agricultural property, taken by the same person, as donee or successor, from the same disponer.