You can sell first, pay the CGT, then claim a refund when you buy. In Revenue's example, reinvesting 80% of the proceeds got 80% of the tax back.
Quick facts
- Full relief
- If you spend at least the sale price
- Partial relief
- In proportion to what you reinvest
- Timing
- Second deal within 24 months
- Window
- First deal by 31 December 2029
- Certificate
- From Teagasc
- Clawback
- Sell the new land within 5 years
What it does
It gives "full relief from CGT when the purchase price exceeds the sales price or partial relief on CGT when the purchase price is lower than the sale price." "The relief does not extend to buildings on the land."
Revenue's partial example: reinvest 80% of the proceeds and get 80% of the tax back. "Ryan will receive a refund of €42,777 (80% of the €53,471.22 he paid)."
The rules
"The first sale, or purchase, must occur between 1 January 2013 and 31 December 2029. The next sale or purchase must occur within 24 months of the first." Land swaps count too.
"The sale and purchase, or exchange, must result in a reduction in the distance between the land." "To qualify for the relief, you must have a Farm Restructuring Certificate issued by Teagasc."
Clawback
"You may dispose of land that you purchased or exchanged within five years of the date of purchase or exchange. If you do, there will be a clawback of the Farm Restructuring Relief." Compulsory purchase is exempt. Claim on the Farm Restructuring Relief claim form with your CGT return.
Common questions
What is Farm Restructuring Relief?
Relief from Capital Gains Tax when you sell and buy, or swap, farmland to bring your holding closer together.
Do I need a Teagasc certificate?
Yes, a Farm Restructuring Certificate issued by Teagasc.
How long do I have between selling and buying?
The second transaction must be within 24 months of the first, with the first by 31 December 2029.
Can I get a CGT refund if I sell first?
Yes. Pay the CGT on the sale, then claim a refund when you buy the new land.