Budget 2020: Farm Restructuring Relief extended to 2022
It has been confirmed today, Tuesday, October 8, that the Government will allow for a further relief for farm restructuring.
In announcing Budget 2020, the Minister for Finance, Public Expenditure and Reform, Paschal Donohoe, outlined: “As such, and subject to state aid approval, I am extending the Farm Restructuring Relief, introduced in Budget 2013, to the end of 2022 with no change to the conditions of the relief.”
According to Revenue.ie, farmers may claim relief from Capital Gains Tax (CGT) if they dispose of farmland for farm restructuring purposes.
The purpose of farm restructuring is to make your farm more efficient [improve the operation and viability of the farm].
“This can be achieved by selling and purchasing or exchanging parcels of land to bring them closer together.”
Revenue’s definition of a parcel of land is “an entire agricultural field or group of fields used for farming purposes”.
Capital Acquisitions Tax
Furthermore, Minister Donohoe outlined: “I recognise that there are ongoing concerns about the Capital Acquisitions Tax [CAT] impact.
“Therefore I have decided to increase the lifetime ‘Group A’ threshold – which broadly applies to transfers from parents to children – from €320,000 to €335,000.”
