Capital Acquisitions Tax Consolidation Act 2003 section 102A

Agricultural and business property: development land

Section 102A provides for a clawback of agricultural relief or business relief where the property concerned includes development land that is disposed of during the period beginning six years after the valuation date of the gift or inheritance and ending ten years after that date.

• Where agricultural relief (section 89 or 89A) or business relief (section 92) has been granted on property that includes development land, a clawback arises if that land is disposed of (in whole or in part) between the sixth and tenth anniversaries of the valuation date.
• Development land is land in the State whose market value exceeds its current use value — that is, its value on the assumption that it would be unlawful to carry out any development other than development of a minor nature.
• On a clawback, the tax is recomputed at the valuation date as if the excess of market value over current use value had not qualified for agricultural or business relief, and an additional return must be delivered to the Revenue Commissioners with any outstanding tax paid.
• Key definitions — including agricultural property, current use value, development land, development of a minor nature, relevant business property, and valuation date — are set out in the section or by cross-reference to other provisions of the Act.