Several tax reliefs that are central to farm succession are being renewed and in some cases extended, Minister for Agriculture Martin Heydon has confirmed.
These are:
Agricultural Relief.Young Trained Farmer Relief.Farm Restructuring (CGT) relief.Agricultural Relief
Agricultural relief will remain available on the current terms to farm families to facilitate succession and the intergenerational transfer of farms.
This relief significantly reduces the tax payable for anyone who is gifted or inherits agricultural property, if they qualify for the relief. It effectively reduces the taxable value of the property, including land, by 90%, subject to certain conditions. It saves farm families around €230m in tax every year.
Young Trained Farmer Relief
The 100% Young Trained Farmer Stamp Duty Relief saves young farmers around €20m annually. Minister Heydon has taken the Commission on Generational Renewal’s recommendation to bring more certainty to succession planning, and has extended this relief by four years instead of the normal three years.
Farm Restructuring (CGT) relief
Farm Restructuring (CGT) relief can be claimed when land is sold for farm restructuring purposes.
The relief provides full relief from Capital Gains Tax (CGT) when the purchase price exceeds the sales price, or partial relief on CGT when the purchase price is lower than the sale price. It is matched with a complementary Stamp Duty for Farm Consolidation relief. Both of these reliefs have been extended by four years.
Generational renewal
Minister Heydon, announcing the agri taxation measures on Tuesday, said supporting young farmers and facilitating generational renewal was critical to ensure a bright future for the agri-food sector.
“The Commission on Generational Renewal in Farming recently submitted their report to me. I am very pleased that, following extensive engagement with my colleague Minister Donohoe, today’s Budget takes the first steps to addressing the commission’s recommendations with a view to supporting the next generation of farmers,” he said.
“These are the immediate taxation measures I have agreed in response to the report by the Commission on Generational Renewal. An implementation team is being established in my Department which will work on the recommendations of the commission. While some recommendations are for consideration and progress in the context of the next CAP, others can be progressed in a shorter time frame.”
Several tax reliefs that are central to farm succession are being renewed and in some cases extended, Minister for Agriculture Martin Heydon has confirmed.
These are:
Agricultural Relief.Young Trained Farmer Relief.Farm Restructuring (CGT) relief.Agricultural Relief
Agricultural relief will remain available on the current terms to farm families to facilitate succession and the intergenerational transfer of farms.
This relief significantly reduces the tax payable for anyone who is gifted or inherits agricultural property, if they qualify for the relief. It effectively reduces the taxable value of the property, including land, by 90%, subject to certain conditions. It saves farm families around €230m in tax every year.
Young Trained Farmer Relief
The 100% Young Trained Farmer Stamp Duty Relief saves young farmers around €20m annually. Minister Heydon has taken the Commission on Generational Renewal’s recommendation to bring more certainty to succession planning, and has extended this relief by four years instead of the normal three years.
Farm Restructuring (CGT) relief
Farm Restructuring (CGT) relief can be claimed when land is sold for farm restructuring purposes.
The relief provides full relief from Capital Gains Tax (CGT) when the purchase price exceeds the sales price, or partial relief on CGT when the purchase price is lower than the sale price. It is matched with a complementary Stamp Duty for Farm Consolidation relief. Both of these reliefs have been extended by four years.
Generational renewal
Minister Heydon, announcing the agri taxation measures on Tuesday, said supporting young farmers and facilitating generational renewal was critical to ensure a bright future for the agri-food sector.
“The Commission on Generational Renewal in Farming recently submitted their report to me. I am very pleased that, following extensive engagement with my colleague Minister Donohoe, today’s Budget takes the first steps to addressing the commission’s recommendations with a view to supporting the next generation of farmers,” he said.
“These are the immediate taxation measures I have agreed in response to the report by the Commission on Generational Renewal. An implementation team is being established in my Department which will work on the recommendations of the commission. While some recommendations are for consideration and progress in the context of the next CAP, others can be progressed in a shorter time frame.”
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