€25,000 family farm partnership tax credit edges closer
The opening of the Succession Farm Partnership Scheme, designed to promote the inter-generational transfer of family farms, is edging closer.
A spokesperson for the Department of Agriculture said: “The launch of the Succession Farm Partnership register is planned in the coming weeks”.
The family farm partnership measure will involve a €25,000 tax credit over a five-year period, to encourage farmers to sign over land to the next generation.
The scheme allows eligible persons to enter into a partnership, and an appropriate profit-sharing agreement, with the provision for the transfer of the farm to the younger farmer at the end of a specified period (not exceeding 10 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 had previously confirmed that the ‘favorite niece or nephew’ is included under this measure.
The partnership model enables a gradual transfer of control and also facilitates knowledge transfer from one generation to another.
The Department spokesperson also said: “Guidance documents and sample application forms will be published on the Department’s website and will be available through Teagasc and other farm advisory services”.