5 capital tax changes and considerations under Budget 2019

Farmers should consider a number of changes and aspects to Budget 2019 that will affect the agri industry, according to agricultural consultancy and professional services firm FDC Group.

Donncha Collins, senior tax consultant with FDC (Farm Development Co-Op), provided an insight into the impact on capital taxes, listing off main aspects from a tax point of view.

He highlighted five key considerations following the budget:
  1. Stamp Duty;
  2. Tax-free threshold for gifts;
  3. CGT and CAT;
  4. Major reliefs;
  5. VAT for tourism.

On the topic of Stamp Duty, Collins noted that the Young Trained Farmer Stamp Duty Relief has been extended until 2021.

The relief, which had been due to expire at the end of the year, was given a further three-year extension by the minister in today’s announcement.

The tax-free threshold for gifts and inheritances between parents and children  has seen a modest increase of €10,000, Collins said, from a ceiling of €310,0000 to €320,000.

Meanwhile, it was noted that there have been no changes made to the Capital Gains Tax (CGT) rate or Capital Acquisitions Tax (CAT) rates. They each remain at 33%, Collins said.

The major reliefs such as the Agricultural Relief; Business Relief; Entrepreneur Relief; Capital Acquisitions Tax; Farm Restructuring/Consolidation Relief; and so on have also been left untouched, with no amendments announced.

Finally, Collins noted the revealed tourism VAT increase, from 9% to 13.5%, for farmers who may have businesses connected to the tourism and hospitality sector, such as farmhouse B&Bs or farm tours.

Stay tuned to AgriLand for further expert analysis from FDC Group on the impact of Budget 2019 on Irish agriculture.