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Relief for farm restructuring.
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48.— (1) The Principal Act is amended by inserting the following section after section 604A:
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“604B.— (1) (a) In this section—
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‘agricultural land’ means land used for the purposes of farming and such farm buildings together with the land occupied with such farm buildings as are of a character appropriate to such land but not including farm houses or mansion houses or the land occupied with such farm houses and mansion houses unless such farm houses or mansion houses are derelict and unfit for human habitation;
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‘exchange of farm land’ means an exchange under which an interest in agricultural land is conveyed or transferred by a farmer to another farmer in exchange for receiving, by way of conveyance or transfer, an interest in agricultural land from that other farmer and includes an exchange where the agricultural land is conveyed or transferred by or to joint owners where all the joint owners (other than the spouse or civil partner of a joint owner) are farmers; and the date of the exchange shall be the date on which the conveyance or transfer is executed;
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‘farm restructuring certificate’ means a certificate issued for the purposes of this section by Teagasc to a farmer in relation to a sale and purchase or an exchange of qualifying land where—
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(i) the first sale or purchase of qualifying land occurs in the relevant period and the subsequent sale or purchase of that land occurs within the period of 24 months commencing on or after the date of the first sale or purchase of such land, or
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(ii) the exchange occurs in the relevant period,
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and which identifies the land concerned, the owner or owners of such land and certifies that Teagasc is satisfied, on the basis of information available to Teagasc at the time of so certifying, that the sale and purchase or the exchange of qualifying land complies, or will comply, with the conditions relating to farm restructuring set down in the guidelines;
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‘farmer’ means an individual who spends not less than 50 per cent of that individual’s normal working time farming;
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‘guidelines’ means guidelines made and published pursuant to paragraph (b)(i);
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‘interest in qualifying land’ means an interest in qualifying land which is not subject to any power on the exercise of which the qualifying land, or any part of any interest in the qualifying land, may be revested in the person from whom it was purchased or exchanged or in any person on behalf of such person;
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‘purchase of qualifying land’ means a conveyance or transfer of an interest in qualifying land to a farmer and includes a conveyance or transfer where the qualifying land is conveyed or transferred to joint owners where all the joint owners (other than the spouse or civil partner of a joint owner) are farmers; and the date of purchase of qualifying land shall be the date on which the conveyance or transfer is executed;
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‘qualifying land’ means agricultural land in respect of which a farm restructuring certificate has been issued by Teagasc and that certificate has not been withdrawn;
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‘relevant period’ means the period commencing on 1 January 2013 and ending on 31 December 2015;
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‘sale of qualifying land’ means a conveyance or transfer of an interest in qualifying land by a farmer and includes a conveyance or transfer where the qualifying land is conveyed or transferred by joint owners where all the joint owners (other than the spouse or civil partner of a joint owner) are farmers; and the date of the sale of qualifying land shall be the date on which the conveyance or transfer is executed;
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‘Teagasc’ means Teagasc — the Agricultural and Food Development Authority.
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(b) For the purposes of this section—
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(i) the Minister for Agriculture, Food and the Marine with the consent of the Minister for Finance may make and publish guidelines, from time to time, setting out—
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(I) how an application for a farm restructuring certificate, in relation to a sale and purchase, or exchange, of agricultural land, is to be made,
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(II) the documentation required to accompany such an application,
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(III) the conditions relating to farm restructuring, and
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(IV) such other information as may be required in relation to such application,
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(ii) where an application is made in that regard, Teagasc shall issue a farm restructuring certificate in respect of a sale and purchase, or an exchange, of agricultural land, where they are satisfied, on the basis of the information available to Teagasc at that time, that the sale and purchase or exchange of such land complies, or will comply, with the conditions relating to farm restructuring, and
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(iii) Teagasc may, by notice in writing, withdraw any farm restructuring certificate already issued.
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(2) A gain shall not be a chargeable gain on a sale or exchange of qualifying land by an individual or individuals where the consideration for the qualifying land that is purchased or the other qualifying land that is exchanged is equal to or exceeds the consideration for the qualifying land that is sold or exchanged by the individual or individuals concerned.
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(3) Where the consideration for the qualifying land that is purchased or exchanged by an individual or individuals is less than the consideration for the qualifying land that is sold or the other qualifying land that is exchanged by the individual or individuals concerned, the chargeable gain that accrues in respect of the sale or exchange of the qualifying land shall be reduced in the same proportion that the consideration for the qualifying land that is purchased or exchanged bears to the consideration for the qualifying land that is sold or the other qualifying land that is exchanged.
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(4) Where qualifying land in respect of which relief has been given under subsection (2) or (3) is disposed of within the period of 5 years from the date of the purchase or exchange of that qualifying land, capital gains tax shall be charged on the individual or individuals concerned as if the relief in those provisions had not applied.
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(5) Subsection (4) shall not apply where the disposal arises as a consequence of a compulsory acquisition.
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(6) Relief under subsection (2) or (3) shall be by means of discharge or repayment of tax or otherwise.”.
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(2) This section shall come into operation on such day as the Minister for Finance may by order appoint.
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