“We wish to transfer land to our only son who is living in London and will continue working there for another few years. We understand that in order for him to qualify for agricultural relief from capital acquisitions tax (CAT), he must pass the 80% farmer test and either farm the land for six years or lease it out to a farmer for six years. It is proving difficult to find a suitable candidate to rent. Consequently, can he rent the land back to his father? We are concerned that this will impact on his father’s entitlement to retirement relief from capital gains tax.”

Active farmer test