As the Deputy is aware, CAT Agricultural Relief enables qualifying farmers to reduce their liability to CAT by 90%. The relief operates by reducing the market value of 'agricultural property' (including farmland, buildings, stock) by 90%, so that gift or inheritance tax is calculated on an amount known as the 'agricultural value', which is substantially less than the market value.
To qualify for agricultural relief, 80% of the beneficiary’s assets, after having received the gift/inheritance, must consist of qualifying agricultural assets. The beneficiary must also be an active farmer or lease the land to one. Agricultural Relief has been available for gift and inheritance tax since the introduction of Capital Acquisitions Tax in 1976.
I recognise that CAT Agricultural Relief is a key relief in ensuring the inter-generational transfer of farm assets and farm succession planning, and I have no plans to amend it at this time.