Capital Acquisitions Tax Consolidation Act 2003 section 89A

Section 89A provides a modified form of agricultural property relief for capital acquisitions tax purposes, effective from 1 January 2025 subject to a commencement order, replacing the previous "active farmer" requirement with a requirement that the agricultural property be used for the purposes of farming.

• Relief reduces the taxable value of qualifying agricultural property by 90%, provided both the disponer and the beneficiary are individuals and the property has been used for farming purposes for at least 6 years before and after the transfer.
• At the valuation date, at least 80% of the beneficiary's total property value must consist of agricultural property located in an EU member state or the United Kingdom, with only certain residential property debts deductible when calculating this threshold.
• If agricultural property is sold within the 6-year post-transfer period, the proceeds must be reinvested in other agricultural property within one year (or 6 years for compulsory acquisitions), failing which the relief is clawed back and additional tax becomes payable.
• Land with solar panels installed on no more than half of the total area still qualifies as agricultural property, with farming conditions applying only to the portion without solar panels, and leasing the solar panel land does not constitute a disposal.