A cap of €70,000 is to be applied collectively to three of the main Young Trained Farmer Reliefs as part of the finance bill that will go to the second stage of the Dáil next week.

Young Trained Farmer stamp duty relief, stock relief and succession farm partnership credits will all fall under the €70,000 limit.

For example, if a young farmer was to buy a farm worth €1m, they would save the normal 6% stamp duty fee of €60,000 for being a qualified Young Trained Farmer.

However, once the €70,000 limit is in place they will only have a remaining €10,000 for tax relief to claim for their remaining time as a qualified Young Trained Farmer under 35.

This is placing another barrier in the way for young farmers

This would have a serious impact on young trained farmers who intend to use multiple reliefs in tandem to grow their farm enterprises.

Young trained farmers are currently eligible for 100% stock relief, and can claim up to €40,000/year tax relief on buying stock.

They can also make use of €5,000/year over five years on income tax relief if they are part of a succession farm partnership.

“We must look into the number of young farmers that this will impact but at first glance this seems like a very low threshold for Young Farmer Reliefs,” Macra na Feirme president James Healy told the Irish Farmers Journal.

“This is placing another barrier in the way for young farmers entering agriculture.”

“We would hope that the Minister for Finance Paschal Donohoe will reconsider before the vote is due.”

The finance bill is due to enter its second stage in the Dáil on Tuesday 23 October.

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