Government budget advisers have put the spotlight on “wealthy” non-farmers buying up agricultural land to reduce their inheritance tax bills.
Ahead of Budget 2027, the inter-departmental tax strategy group scoped out the possibility of slapping new restrictions on who can purchase farmland, in a bid to ensure the rich pay their fair share.
A 2024 attempt by Government to tighten the eligibility rules around agricultural relief – which, along with other reliefs, allow a farm worth up to €4m to be transferred without paying capital acquisitions tax – has not made it off the drawing board.
The proposed changes were granted numerous deferrals amid farm sector fears that active farmers who were not the target of the changes could suffer.
The restrictions explored by the group were non-taxation measures that it said could better cater to genuine farm families.
Government has been advised that several EU member states have already moved to restrict the sale of farmland to those not actively farming.
Minister for Agriculture Martin Heydon is keeping his cards close his chest as budget negotiations are ongoing, with a spokesperson noting that the minister will not comment in “advance on any matters that might be the subject of budget decisions”.
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