Taxes Consolidation Act 1997 section 604B

Relief for farm restructuring

Section 604B provides relief from capital gains tax on gains arising from transactions undertaken to achieve farm restructuring.

• Relief applies to sales, purchases, or exchanges of agricultural land in the period from 1 January 2013 to 31 December 2029, where Teagasc has certified the transaction was carried out for farm restructuring purposes.
• Full relief is given where the consideration for the land purchased or exchanged equals or exceeds the consideration for the land sold or exchanged; where it is less, relief is reduced proportionally.
• Claimants must furnish information to Revenue to enable calculation of the CGT that would have been payable without the relief, submitted with the relevant tax return.
• Relief is clawed back if the qualifying land is disposed of within five years of purchase or exchange, unless the disposal arises from a compulsory acquisition.