Budget an opportunity to 'end unfairness' within inheritance tax system
Budget 2026 should include changes to the inheritance tax system to facilitate easier land transfer within farm families, a Fine Gael MEP has said.
Midlands-North West MEP Maria Walsh said she is calling on government to "end the inequitable tax regime which penalises farmers without children".
She said the upcoming budget presents an "opportunity to end the unfairness that persists within our inheritance tax system".
"An unfairness which has impeded succession planning and access to land for the next generation of farmers," Walsh said.
“For far too long, not having children has come with a hefty financial cost for farmers.
"While parents can pass on assets of €400,000 tax-free to their children, this reduces to €40,000 for members of one’s extended family.
"For farmers, this means they are doubly penalised in terms of passing on their home and business to the next generation.
“This is a two-fold issue; providing our older farmers with the peace of mind that they have provided for the next generation, and removing barriers to access to land for young farmers."
Only 7% of Irish farmers are under 35, with the average age standing at 58 years of age, Walsh noted.
"If we’re serious about getting more young people into farming, we need to remove financial barriers that are overly prohibitive," she said.
“Many farm families do not have natural successors for their land - this reality should not come with a financial cost.
"As the nature of our families grow and change, our laws too must evolve.
"There is also the added layer of complexity that for many farmers, the transfer of land is not merely a financial transaction.
"It is a way of preserving culture, traditions and generational bonds."
She said that the government next week has an opportunity to increase the threshold beyond its current €40,000.
"I urge it to do so and show its commitment to our farm families through tangible actions over mere words," Walsh added.
