€70,000 cap on tax relief ‘could discourage’ young farmers
A €70,000 cap on tax relief for young farmers could discourage young people from continuing with farming, according to Fianna Fáil TD Jackie Cahill.
Changes in the 2018 Finance Act placed a €70,000 limit on the amount of tax relief for stamp duty, stock relief and succession relief that young farmers can claim over their lifetime.
Deputy Cahill commented on the move warning: “The tax relief for young farmers was introduced as an incentive for older farmers to hand over their farms to their children so that there would be more younger farmers in the industry and to revitalise and energise the sector.
The imposition of this limit could act as a disincentive, as some farmers may worry about breaching the cap over their lifetime.
The Tipperary TD and party spokesperson on horticulture and food said:
“While I welcome the clarity provided by the Revenue Commissioners that the consanguinity relief can be applied before the young farmer relief, and therefore it is only the difference between the two that is eligible for the cap, some concerns about the cap itself still exist.
“All efforts must be made to encourage more younger people into farming.
“Any moves which could be seen to create obstacles to this must be properly examined and we must ensure that any new measures in the post 2020 CAP programme are thoroughly scrutinised, ”deputy Cahill concluded.