Any proposed inheritance tax reforms in Budget 2025 must distinguish between farm succession and “high net worth investors”, the Irish Creamery Milk Suppliers’ Association (ICMSA) has said.
The farm organisation recently presented its pre-budget submission to Minister for Agriculture, Food and the Marine, Charlie McConalogue.
ICMSA president Denis Drennan said that the final budget from this government “must deliver for farmers across a range of issues, particularly around the falling incomes being experienced across all sectors”.
ICMSA
It has been widely reported that both Fianna Fáil and Fine Gael are eager to explore possible reforms inheritance tax in the upcoming budget.
Under the current legislation, children are allowed to inherit €335,000 during their lifetime from their parents before they have to pay Capital Acquisitions Tax (CAT) at a rate of 33%.
The ICSMA president said that there is a need for inheritance tax reform to support the transition of the family farm from one generation to the next, and to support farmers in the land market.
“In this regard, ICMSA is proposing an increase in the Class A threshold from €335,000 to €500,000 and an amendment to the reliefs to ensure that farmers are favoured over investors in land,” Drennan said.
The farm organisation’s pre-budget submission also calls for the delivery of a measure to address excess income volatility in the farming sector, which had been promised in the Programme for Government.
The ICMSA said that a 70% grant should be brought forward for all farmers investing in slurry storage facilities.
An amendment to VAT and/or capital allowances should be made to support investment in environmentally friendly equipment on farms, it added.
The association added that a payment of €100/head for calf rearers and another €100/head for cattle finishers should be part of the Dairy Beef Calf Scheme.
The submission also calls for spaces in the Agri-Climate Rural Environment Scheme (ACRES) to be increased to 70,000, with a focus on intensive farmers.
The government was urged to fund the recommendations made in various reports by the Food Vision groups.
“The Budget gives the government the chance to show us farmers that they have our backs. They should take that opportunity.
“We have put forward a number of eminently sensible and logical measures – none of which is expensive – that would make a real difference to farm families.
“The government will be judged completely on their willingness to act on these sensible and modest measures and include them in Budget 2025,” Drennan said.