The issue of development in areas where land is leased to Konacre or Agistment, instead of being directly exploited, will pose problems, particularly for land in development areas where the country`s development value, although currently reduced, would be significantly higher than agricultural value. Until recently, Her Majesty`s revenues and customs facilitated the total exemption from farm property inheritance tax, which was leased to Conacre, by agreeing that these lands would be eligible for both the exemption of agricultural real estate and the relief of commercial real estate, a policy reflected in the inheritance tax manual, which served as a reference for Her Majesty`s tax and customs agents. As MEMBERS know, Conacre is a specifically Irish tradition, as those living in rural areas rent small plots for a single harvest. In its original form, the landowners gave each tenant of Konacre a strip of land to which the tenant had access to plants and cultivation. However, the tenant only owned the crop when he had paid for it in cash, work or a portion of the harvest. In its modern form, it has become partly a business, and small farming activity in particular, and it is absolutely ridiculous that it should never be considered a separate “investment activity”. The Conacre, which is by nature temporary, earns relatively little income and is essentially a means of obtaining land for a farming family that does not have particular projects at a certain time of year. Conacre is a land rental system that is unique in Ireland. The current use of “conacre” was born from the earthly laws of the mid-19th century. 95.Health and Harmony`s proposals concern England, where there are no conacre agreements, and this issue is therefore not directly taken into account in the consultation. The document states that the government will “examine new business models and opportunities for land lease reform to support estate planning and remove barriers to investment.” 182 The Minister informed us that the Tax Simplification Office was currently studying the reduction of the burden on agricultural real estate, but noted that tax measures to encourage certain behaviours could also have unintended consequences. He also said that some areas were benefiting from the flexibility of a short-term lease by citing the examples of potatoes and short-term grazing.183 All of these situations and cases need to be identified and brought to the attention of the Department of Finance, otherwise in this province, as my colleague Danny Kennedy said, we will all suffer the same fate and regardless of whether you are a Protestant. Catholic or any religion.
I heard about a case of a man who left 10 or 12 hectares in his will for a local church. The country is in a development zone and has been left on the condition that the Church cannot sell it. The Church now has a huge inheritance tax bill; she cannot sell the land and cannot find the money. The tax bill is about $2 million and will lead the Church to bankruptcy. It would have been safer not to have the country. This activity creates serious difficulties and problems not only for farmers, but also for the general education community. In 19th-century Ireland, Conacre was the name of the system, where the country was not rented for a number of years, but for a single season, usually a year. The land was leased for the purpose of including a single crop of potatoes or maize or for grazing.