Martin Stapleton, IFA farm business chair, has said it is vitally important tax rules do not penalise farmers who need to reduce stock numbers to match feed availability.
Speaking to the Irish Farmers Journal, Stapleton said: “There is fear at the minute that farmers won’t be able to sell stock because if they do, under the rules around stock relief, they will have an increased tax liability.
“Because this is such an extraordinary year we are suggesting to the Government that the current rules around force majeure for the TB scheme be extended. Those same rules can then apply to farmers that go below their stock values because of a decision made to reduce numbers this year.”
Proposal
The IFA proposes that any profits arising from such disposals be excluded for computing income for tax purposes in the year they occur and are instead deemed to arise in equal instalments over the next four years. It is also proposing that in place of the normal 25% stock relief farmers should be able to elect for stock relief of 100% in the four year period.
Stapleton added: “Its vital farmers don’t end up carrying too much stock for tax reasons. It is not a measure that is costing the Government anything. It is just to ensure the rules that apply encourage farmers to do the right thing.
“We’re conscious of the fact the country isn’t awash with money. Much of the changes and the proposals that we’ve made are relatively cost free or at least income neutral.”
Loan scheme
The IFA also reiterated calls for the immediate introduction of the low-cost low scheme of €25m that was promised in last year’s budget. Stapleton believes there is huge demand among farmers for the scheme, given the extreme weather challenges they had faced and the growing need for cashflow.
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Martin Stapleton, IFA farm business chair, has said it is vitally important tax rules do not penalise farmers who need to reduce stock numbers to match feed availability.
Speaking to the Irish Farmers Journal, Stapleton said: “There is fear at the minute that farmers won’t be able to sell stock because if they do, under the rules around stock relief, they will have an increased tax liability.
“Because this is such an extraordinary year we are suggesting to the Government that the current rules around force majeure for the TB scheme be extended. Those same rules can then apply to farmers that go below their stock values because of a decision made to reduce numbers this year.”
Proposal
The IFA proposes that any profits arising from such disposals be excluded for computing income for tax purposes in the year they occur and are instead deemed to arise in equal instalments over the next four years. It is also proposing that in place of the normal 25% stock relief farmers should be able to elect for stock relief of 100% in the four year period.
Stapleton added: “Its vital farmers don’t end up carrying too much stock for tax reasons. It is not a measure that is costing the Government anything. It is just to ensure the rules that apply encourage farmers to do the right thing.
“We’re conscious of the fact the country isn’t awash with money. Much of the changes and the proposals that we’ve made are relatively cost free or at least income neutral.”
Loan scheme
The IFA also reiterated calls for the immediate introduction of the low-cost low scheme of €25m that was promised in last year’s budget. Stapleton believes there is huge demand among farmers for the scheme, given the extreme weather challenges they had faced and the growing need for cashflow.
Read more
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IFA calls for ANC budget of €300m
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