Supports for land transfer are crucial for encouraging generational renewal in the agricultural sector, the IFA has said.
Statistics on the use of these reliefs published by Revenue in recent weeks underline their importance, IFA farm business chair Rose Mary McDonagh said.
“The report highlights the struggle of generational renewal, with 37% of farmers aged over 60, while only 24% of farmers are under 40. However, the report also points out the value that tax reliefs provide to incentivise transfer and succession,” she said.
Agriculture, a low margin, highly capital-intensive business requires investment in the primary asset of land, she pointed out. This made reliefs, including stamp duty and young trained farmer reliefs, an imperative for greater land mobility.
“In 2018, Capital Gains Tax Retirement Relief was worth, on average, €355,795 to each claimant. On average, between 2014 and 2019, Capital Acquisitions Tax Agricultural Relief has been worth €104,492 to each claimant,” McDonagh said.
The Succession Farm Partnership Credit was introduced in 2017 and there was a 66% increase in the number of those who availed of the relief in 2018.”
“In 2019, consanguinity relief from stamp duty on non-residential transfers was worth, on average, €17,009 per claimant. In addition, there has been a 58% rise in the number of Young Trained Farmers claiming relief from stamp duty between 2013 and 2019.”