Key farm succession and land transfer tax reliefs are under the spotlight by the Government ahead of the autumn budget.

Its tax strategy group has modelled potential changes to agricultural reliefs from capital acquisitions tax (CAT).

The relief currently reduces the market value of agricultural property by 90% for CAT purposes, saving farmers €206m in tax last year.

Reducing the relief to between 80% and 50% of a farm’s value would cost farmers between €9m and €64m.

Key reliefs

Key tax reliefs for young trained farmers, farm consolidation, stock relief, farm partnerships and accelerated capital allowances are safe until 2024 or 2025.

However, consanguinity relief on stamp duty is due to expire this year.

This relief cuts stamp duty to 1% on transfers of agricultural land between close family relations. It saves farmers €52.5m per year.

The relief is being reviewed to see whether it should be retained, amended or dropped by Government.

It is understood that the Department of Agriculture is keen to continue the relief.

Documents also reveal that lobbying by solar farm developers to allow more than 50% of a farm go into solar without affecting tax reliefs has been rejected.