Key tax reliefs for farmers have been extended, and their overall value increased, in the announcement of Budget 2024.
Announcing the budget today (Tuesday, October 10), Minister for Finance Michael McGrath said that consanguinity relief on stamp duty would be extended for five years.
The relief provides for a 1% rate of stamp duty to be applied on the transfer of agricultural land – by sale or purchase, exchange or gift – if it is made to certain close relations including a husband, wife, child, stepchild, or nephew and niece.
Minister McGrath said: “Consanguinity relief is a vital measure which supports the transfer of farms one generation to the next.
“I will extend this relief for a period of five years to provide more certainty to farming families as they plan for the future.”
The finance minister also confirmed that the accelerated capital allowances for farm safety equipment would be extended.
This measure allows for accelerated capital allowances of 50% per annum over two years for certain eligible equipment.
Minister McGrath went on to say that the government would increase the maximum aggregate lifetime limit of a number of farm-related tax reliefs to €100,000, which is the maximum allowable aggregate relief under the EU regulations.
This enhanced ceiling of reliefs will apply to the young trained farmer stamp duty relief; the stock relief for young trained farmers; and the relief for succession farm partnerships.
At present, the maximum ceiling of value for these reliefs is €70,000, according to EU rules.
The minister also announced that the maximum amount of enhanced stock relief for farmers who are partners in a registered farm partnerships will be increased from €15,000 to €20,000, in line with EU regulations.
Meanwhile, the land leasing income tax relief will be amended so that it only becomes available when the land has been owned for seven years.
The government has also announced that it will extend the liability for landowners impacted by the Residential Zoned Land Tax (RZLT) by one year.
Minister McGrath said: “I am extending the liability date for the tax by one year to allow for the planned 2024 review of maps to take place and to afford affected people with a further opportunity to engage with the process.”