Tax Appeals Commission determination 40TACD2022 regarding CAT, 2022

Administrative Decision Number40TACD2022
Date25 February 2022
Subject MatterCAT
1. The Appellant received gifts of agricultural property and non-agricultural property
comprising residential property from her parents on the same day in October 2013 and
claimed agricultural relief in accordance with Capital Acquisitions Tax Consolidation Act
2003 (CATCA), section 89. The Appellant argued that she received the agricultural
property before she received the residential property and therefore after receiving the
agricultural property she was a “farmer” and therefore entitled to reduce the market
value of the agricultural property by 90% for the purposes of establishing a liability to
capital acquisitions tax.
2. The Respondent refused the agricultural relief on the grounds that there was no
evidence to support the Appellant’s assertion that she received several benefits of
agricultural property in priority to the residential property. The Respondent also
asserted that where there is more than one gift on the Valuation Date, all gifts must be
looked at collectively as if all benefits had been received contemporaneously and not
in isolation.
3. Therefore in this appeal it is necessary to establish whether Appellant received the gift
of agricultural property from her parents before receiving non-agricultural property
and thereafter to determine whether all benefits received on the Valuation Date must
be considered collectively at the end of the day or in isolation at a particular point in
4. During October 2013, the Appellant received the following gifts from her parents:
(a) One quarter share of agricultural land at [*****] with a market value of €80,000;
(b) Agricultural land at [*****] valued at €200,000. A deduction of €100,000 was
made in respect of the transfer of a residential property transfer by the Appellant
to her father on 8 October 2013. The value of this gift of the Agricultural land
was therefore €100,000.
(c) Residential property at [*******] valued at €[******]0,000, with an exclusive
right of residence for her parents;
5. By reason of the gifts being made in October 2013, the Appellant failed to file a gift tax
return which was due by 31 October 2014. Following intervention from the
Respondent, the Appellant filed a gift tax return on 27 October 2015 claiming
agricultural relief.
6. The Respondent refused agricultural relief on the grounds that the provisions of
CATCA, section 89 were not satisfied throughout the entirety of the Valuation Date and
where there is more than one gift on the Valuation Date, all gifts must be looked at
collectively as if all benefits had been received contemporaneously and not in isolation.
7. By notice of assessment dated [******] July 20[******], the Appellant was assessed to
capital acquisitions tax in the amount of €30,921 plus surcharge.
8. By notice of appeal dated 14 August 20[******], the Appellant appealed the
assessment raised. The Appellant contended that she is entitled to agricultural relief
as she was a farmer within the meaning of the CATCA, section 89 on the valuation date
and after taking the gifts of the agricultural property, and this was not affected by the
receipt of a separate gift or non-agricultural property later on the same day.
9. CATCA, section 89(1) establishes definitions of “ agricultural property “ , “agricultural
value” and “farmer “:
“agricultural property “ means
(a) agricultural land, pasture and woodland situate in a Member State and
crops, trees and underwood growing on such land and also includes such
farm buildings, farm houses and mansion houses ( together with the lands
occupied with such farm buildings, farm houses and mansion houses ) as are
of a character appropriate to the property, and farm machinery, livestock
and bloodstock on such property …”
“agricultural value “ means the market value of agricultural property reduced by 90
per cent of that value”
“farmerin relation to a donee or successor, means an individual in respect of whom
not less than 80 per cent of the market value of the property to which the individual
is beneficially entitled in possession is represented by the market value of property in
a Member State which consists of agricultural property, and, for the purposes of this
(a) no deduction is made from the market value of property for any debts or
encumbrances (except debts or encumbrances in respect of a dwelling house
which is the only or main residence of the donee or successor and which is
not agricultural property), and
(b) an individual is deemed to be beneficially entitled in possession to
(i) an interest in expectancy, notwithstanding the definition of "entitled in
possession" in section 2, and
(ii) property which is subject to a discretionary trust under or in consequence
of a disposition made by the individual where the individual is an object of
the trust,”
10. CATCA, section 89(2) (as it applied in 2013) provides the relief and states:
“Except where provided in subsection (6), in so far as any gift or inheritance consists
of agricultural property -
(a) at the date of the gift or at the date of the inheritance, and
(b) at the valuation date,
and is taken by a donee or successor who is, on the valuation date and after taking
the gift or inheritance, a farmer, section 28 (other than subsection (7)(b) of that

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT