Finance Bill Protects Family Farm Transactions - Creed

Minister for Agriculture, Food and the Marine Michael Creed TD today welcomed two key measures in the Finance bill in relation to stamp duty on agricultural land transactions: the extension for three years of Consanguinity Relief for inter-family farm transactions and the removal of the upper age limit of 67 for the transferor.

Commenting on the bill, Minister Creed said “I am pleased at this announcement by Minister Paschal Donohoe, that the 1% rate for transactions relating to the family farm has been retained and that the age limit for the transferor has been lifted. Coupled with the existing Stamp Duty Relief for Young Trained Farmers, which is a complete relief from stamp duty, it means that lifetime transfers of land within families, whether by gift or sale, are strongly protected.”

These measures follow detailed engagement between officials of the two Departments.   “I also welcome the announcement by Minister Donohoe that officials from both our Departments will meet to assess progress on the “Agri-Tax Review”, which was published in Budget 2015, and especially to consider the issue of income stabilisation” said Minister Creed

Assisting succession and the inter-generational transfer of family farms has been a central part of the Government’s agri-taxation policy and recent Budgets have included a number of measures to maintain and strengthen that support. In June of this year, Minister Creed launched the ‘Succession Farm Partnership Scheme’, which provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure, promoting and supporting the earlier inter-generational transfer of family farms.

Minister Creed added. “In cooperation with my colleague the Minister for Finance, I look forward to maintaining the support to agriculture and to farming families through the taxation system, which has been estimated at some €350 million per annum”.

Minister Creed also welcomed the other measures confirmed with the publication of the Finance Bill:

  • An important change to support environmental sustainability and promote renewable sources of energy, that where farmers lease farm land for solar panel use, it will be considered as eligible for Agricultural Relief and Retirement Relief.
  • The continuation of measures to promote and support entrepreneurship, as evidenced by the increase in the Earned Income Tax Credit by €200 to €1,150. Most farmers, foresters, fishermen and small food processors are self-employed and will see their tax liability fall with the increase in the tax credit.
  • The new “Keep initiative” to help small employers attract and retain key employees.
  • The extension of the Sustainable Energy Authority of Ireland’s (SEAI) accelerated capital allowance scheme for energy efficient equipment. In last year’s Budget, Minister Creed successfully sought to extend this Scheme to non-incorporated businesses.

 

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Date Released: 19 October 2017

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