€25,000 Family Farm Partnership tax credit cleared in Brussels
A tax credit of up to €25,000 for the establishment of family farm partnerships has been given the go ahead in Brussels, Macra na Feirme President Sean Finan has announced.
Speaking at the Macra na Feirme National Conference in Co. Limerick today, the Macra leader said the EU decision will be welcome news to young farmers.
The Family Farm Partnership structure, which was introduced in last year’s budget, is a structure in which family members can enter into an appropriate profit-sharing agreement.
The structure allows two people, for example family members, to enter into a partnership with an appropriate profit-sharing agreement.
This agreement makes the provision for the transfer of the farm to the young farmer at the end of a specified period, not exceeding ten years.
Under the scheme, 80% of the farm must be transferred to the young person by the end of the 10 year period, while the Department has confirmed the the ‘favorite niece or nephew’ are included under this measure.
The partnership model enables a gradual transfer of control and also facilitates knowledge transfer from one generation to another.
Introducing the tax credit in 2015, the Minister for Finance Michael Noon said it will increase the certainty about the timing of the transfer of a family farm to the next generation of farmers and will greatly assist with long-term planning and farm productivity.
The measure is expected to cost the state €10m per annum.