Macra has said the government’s commitment to the extension of various young farmer tax reliefs to assist is essential to support generational renewal.
Speaking after the announcement of Budget 2023, Macra national president John Keane said it is now critical that the government engages “proactively with the EU on the Agricultural Block Exemption Regulation”, with a view to getting an increase in the lifetime threshold for young farmers from €70,000 under State Aid rules to €140,000.
“The timing of the review of the Agricultural Block Exemption Regulation remains concerning as it coincides with the expiry date of the current Irish young farmer tax reliefs and therefore must not impact on the orderly extension of both young farmer Stamp, Stock and Consolidation reliefs,” he said.
Farmer tax reliefs to continue
Minister for Finance Paschal Donohoe announced the national budget today (Tuesday, September 27), confirming that both the Young Trained Farmer Stamp Duty Relief, and the Farm Consolidation Relief, will continue.
However, the length of these extensions, Minister Donohoe said, are dependent on negotiations at an EU level.
Under the Young Trained Farmer relief, a full relief from Stamp Duty is available for the conveyance of farmland, where the recipient is under 35 years old and is the holder of a specified educational and training qualification.
In this case, the farmer must commit to retaining and farming the land for at least five years, and to spend no less than 50% of their normal working time on the farm.
The aim of this relief is to promote lifetime transfers of land and encourage young people into farming.
Farm Consolidation Stamp Duty Relief, meanwhile, provides that a stamp duty rate of 1% (instead of the normal 7.5% rate for non-residential property) can apply to acquisitions and disposals of land, where the transaction qualifies for a farm-restructuring certificate from Teagasc.
The purpose of this relief is to encourage the consolidation of farm holdings in order to reduce farm fragmentation and improve the operation and viability of farms.