The scheme was originally announced in Budget 2016 and was subject to EU State Aid approval. On Tuesday, Minister Creed confirmed that approval has been received from the European Commission and that it would start in early 2017.

The Succession Farm Partnership Scheme provides a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure.

“This scheme will help to ensure that farming is strategically positioned for future sustainable growth and development. A working group of officials from my Department, Revenue and Teagasc is finalising arrangements with a view to the scheme being available early in 2017,” Minister Creed said on Tuesday.

A tax credit of up to €5,000 per year is available to a partnership that will lead to succession over five years. This is divided among partners in accordance with the profit-sharing ratio specified in the partnership agreement.

This tax credit is available for five years from the date the partnership is registered and is only available to be paid in partnerships where the successor is under 40 years of age.

Tax incentives of farm succession

Tax credit for succession partnerships to start in early 2017

The Succession Farm Partnership Scheme is to begin in early 2017, Minister for Agriculture, Food and Marine Michael Creed has said.