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David milks 80 cows in Laois. His wife Mary does not work off-farm, so the farm generates the full family income.
He has earned an average of €60,000 in the last three years. They have two children under the age of 10.
Benefit
With the increase in the married person’s tax credit of €100 and self-employed credit of €50, as well as the €300 benefit from the increase of €1,500 in the standard rate tax band and the €15 saving in USC as a result of the small change, the family will be €465/annum better off before the effect of carbon tax.
As a farmer on green diesel, this is an extra cost, but the extra tax deduction leaves it neutral. On the family car however, this is an actual cost.
This ignores the extra cost of inputs and power.
Michael is 22 and a recent agricultural college graduate. He is returning home to take over the farm from his uncle. His father is hoping to gift him the home farm in 2022. The 100ac over the two farms is currently valued at €900,000. They are also looking at selling an out-farm of 25ac.
Michael also runs his own agri-contracting business and uses approximately 9,000l of diesel per annum, which could be impacted by the increase in carbon tax.
Benefit
With carbon tax having increased, this is the first and immediate cost of €270, with no relief on the fuel used in the agri contracting.
The extension of stamp duty relief and young trained farmer stock relief to the end of 2022 was good news.
Farm consolidation relief is available to the end of 2022 and will allow the land to be sold and purchased with capital tax reliefs minimising the tax.
Michael needs to ensure that he can qualify for favourite nephew relief on the land being taken from the uncle, or major tax could apply.
The income tax changes on tax credits and USC will benefit to the amount of €115.
John farms 250ac, 100ac of which is owned and the rest on a long-term lease. Last year, his tillage enterprise had an income of €55,000, which he expects to stay the same this year.
Benefit
John will benefit to the tune of €100 for the increase in the tax credits, €300 for the increase in the standard rate band and the €15 USC change.
Peter is married to Joan, has two children and is farming 90ac with sucklers and sheep. They have a car, jeep, a 100HP tractor. They travel 15,000km in the car, 10,000km in the jeep and burn 1,000l of diesel in the tractor.
Effect
With the increase in the married person’s tax credit of €100 and the self-employed credit of €50 and €15 in USC respectively, the family benefits to the tune of €165. The carbon tax increase will cost them approximately €150/annum.
Andrew is a small hill sheep farmer and is married to Alice. They have four children aged between two and 18. Alice works part-time off-farm and earns €12,000/annum. Andrew is a recipient of Farm Assist and is in GLAS.
Benefit
Andrew would have no income tax/USC liability. No gain on the previous year, but schemes rolled over, which is massively beneficial.
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