Updated guidelines for Capital Gains Tax (CGT) Relief for ‘Farm Restructuring’ have been announced by the Minister for Agriculture, Food and the Marine, Simon Coveney, in conjunction with his colleague the Minister for Finance, Michael Noonan.
CGT Relief for Farm Restructuring was introduced in Budget 2013 to facilitate sales, purchases and swaps of land parcels to ensure more efficient farm structures. However, whole-farm replacement was at that time precluded from this relief.
The Agri-Taxation Review, published as part of Budget 2015, recommended that CGT Relief for Farm Restructuring be extended to include whole-farm replacement.
Minister Noonan announced this measure in Budget 2015, as part of a comprehensive package of measures and these updated Guidelines now give effect to this decision.
Minister Coveney commented that the measure is important for farmers with fragmented farm holdings who are seeking to improve efficiency and viability.
“The introduction of such new measures will help address existing structural challenges and enhance the environmental and economic sustainability of our farms.”
As well as the addition of whole-farm replacement as eligible for CGT Relief, the measure is also being extended by a year to 31st December 2016. The Relief is only available to claimants who, on meeting certain conditions, are issued with a ‘Farm Restructuring Certificate’ by Teagasc.
Detailed guidelines on the operation of this relief are available at – Capital Gains Tax relief guidelines relating to applications for farm restructuring certificates.
“We must respond to the structural challenges facing the sector if we are to continue the progress being made towards achieving the ambitious growth targets under Food Harvest 2020. The Agri-taxation Review and the measures introduced to date, including those designed to increase access to land and assist succession planning, are part of that response,” Coveney said.