With confusion reining over the maximum tax relief young farmers can claim, Macra president James Healy has said he wants to meet with Minister for Finance Paschal Donohoe to clarify the situation.

The Finance Bill proposes that, from next year, young farmers can claim a lifetime maximum of €70,000 in total across the young trained farmer reliefs available from stamp duty, stock relief and succession farm partnerships.

The budget has yet to be passed by the Oireachtas.

“Many questions remain on this issue and we are seeking a meeting with Minister Donohoe to understand the full implications for young farmers,” Healy said.

Macra pointed out that stock relief alone is called at €70,000 over four years. This means that a young farmer using this measure to the maximum eligible would no longer be able to avail of other tax reliefs.

Engaging with young farmers on social media, Minister for Agriculture Michael Creed said the measure was not new, instead referring to a "longstanding EU cap on reliefs".

Notes accompanying the Finance Bill state the €70,000 cap is needed "to take account of EU state aid requirements".

According to Macra, this rule has been in place for four years, but the Government has only moved to enshrine it in Irish legislation this year.

"We fully appreciate this cap has been in place since 2014, but considering it has never been implemented and we are only a few months away from Brexit, this announcement has understandably come as a shock to young farmers around the country," Healy said.

"We are facing an uncertain future and in turbulent times, you want to avoid as many shocks as possible, which is why delaying its implementation at an Irish level must be seriously considered.’’

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