Minister Simon Coveney said he was pleased to clarify that, following consultation with the Department of Finance and the Office of the Revenue Commissioners, there are no CGT implications for those moving to joint herd numbers or entering partnerships during the 2015 scheme year and prior to the closing date of the Basic payment scheme.

The minister added that this is a "positive development for many farming families".

In 2005 entitlements were established with the introduction of the Single Payment Scheme and expired on 31 December 2014 when that scheme came to an end.

New entitlements will be established under the Basic Payment Scheme following the scheme closing date of 29 May 2015 for farmers who submit a valid 2015 Basic Payment Scheme application, declare eligible land and fulfil all other eligibility criteria pertaining to the Scheme.

The Department has clarified that as with entitlements held under the Single Payment Scheme (SPS), entitlements disposed of under the Basic Payment Scheme will be classified as an asset subject to CGT. However, the base cost for CGT purposes of entitlements established under the Basic Payment Scheme is zero.

As BPS entitlements will be established at the closing date, no disposals of entitlements can take place before that date. Therefore, there will be no CGT implications for those moving to joint herd numbers or entering partnerships during the 2015 scheme year, granted these actions take place before the closing date of 29 May 2015.

The Department says this announcement will be of particular relevance for those participating in the Young Farmers Scheme or the National Reserve as a ‘young farmer’ or ‘new entrant’.

Many such farmers have applied for joint registration on a herdnumber, in many cases through the addition of a son or daughter to a parent’s herdnumber. For those moving to joint herd numbers or entering partnerships during the 2015 scheme year, no transfer of entitlements takes place and consequently no capital gains will apply.