Finance Act 2020 introduced the requirement to file a CAT return in all cases where a gift or inheritance comprises of agricultural property or relevant business property and agricultural relief or business relief applies. Previously CAT returns only needed to be filed where the aggregate value of benefits received exceeded 80 percent of the relevant tax-free group threshold. The Capital Acquisitions Tax Manual is now amended to reflect this requirement.

The following manuals now reflect the Finance Act 2020 requirement:

• Part 1 (para 1.2.5)
• Part 3 (para 3.1)
• Part 11 (para 11.3.1)
• Part 12 (para 12.2)

Additional amendments in paragraph 11.7.5 of CAT Manual – Part 11 – Agricultural Relief – seek to provide clarity on a clawback of agricultural relief where agricultural land is exchanged for other agricultural land and a Farm Restructuring Certificate has issued from Teagasc in connection with the stamp duty and CGT reliefs for farm consolidation and restructuring.

See eBrief No.039/21 for further details.