The president of the Irish Creamery and Milk Suppliers’ Association (ICMSA), Denis Drennan has welcomed the announcement by government that the incoming changes to the agricultural relief will be “put on hold”.Â
This follows the announcement by Taoiseach Simon Harris that the Finance Bill 2024 will  be amended so that the agricultural relief changes will require a commencement order to be signed before they can come into force.
The Taoiseach said the aim of this change is to allow further consultation to take place with stakeholders on these changes, which have proven controversial since their announcement last month.
Budget 2025 saw an announcement that the active-farmer test will be extended to the disponer of the agricultural property. This change by government aims to ensure that relief benefits real farmers rather than speculators.
The change means that the disponer must also be an active farmer for six years prior to making the gift or inheritance. The six-year period ends immediately prior to the date of the gift or inheritance.
Agricultural relief
Drennan said the ICMSA had noted and highlighted several instances in which the proposed changes to the agricultural relief would have impacted bone fide farm family successions.
He added that while the ICMSA endorses the aim of curbing the use of relief by high net-worth non-farming individuals to manage their wealth, the measures proposed would effectively “hit” genuine and non-genuine farmers alike.Â
The government’s decision to amend the Finance Bill, which implements the taxation changes announced in Budget 2025, according to Drennan, is a “timely recognition of that flaw”.
Drennan added that the recently established Commission on Generational Renewal in Farming was set up to look at farm succession and has several “recognised financial experts” who could “fine tune” the proposed changes to the relief.
The ICMSA president said the commission is scheduled to report back in quarter two of next year, and added that he trusts its recommendations would be included and acted upon in the following budget.