There are a number of “possible inconsistencies” in the age limits which apply to some tax reliefs for young farmers, which are being reviewed in the run-up to Budget 2022.

The Department of Finance, along with the Department of Agriculture, Food and the Marine and Revenue, is currently examining these age limits for agricultural reliefs.

A paper from the Tax Strategy Group (TSG) – an inter-departmental committee which advises government on tax issues in advance of national budgets – noted that there may be inconsistencies in the age at which a person ceases to qualify as a “young trained farmer” under various reliefs.

The paper cites an example wherein a person must be no older than 34 years of age to be eligible for the Stamp Duty relief for young trained farmers, whereas for the Succession Tax Credit applicants (who do not qualify on other grounds) must be under the age of 40 in any year of assessment.

However, the TSG paper also says that there may be “valid policy reasons” for the application of different age limits.

It added that the views of the Irish Farmers’ Association (IFA), the Irish Creamery Milk Supplier’s Association (ICMSA) and Macra na Feirme have been sought and will be examined as part of the Department of Finance’s analysis of the issue before a recommendation is taken to Minister Paschal Donohoe.

Qualifications for tax relief

The paper also sets out a need for clarity and simplification in listing educational requirements needed to avail of agri-tax reliefs.

In order to meet the educational criteria for qualified or trained farmers status, persons are required to hold an approved or eligible qualification.

A list of such qualifications are provided for in relevant sections of certain taxation acts. However, the TSG paper notes that these have not been updated in recent years and have become outdated, inconsistent and difficult to find.

The lists of educational qualifications to apply for these reliefs are “administratively burdensome” to keep up to date and are “in practical terms, largely redundant at this time as they have not been updated for a number of years”, the paper says.

Therefore, consideration is being given for Teagasc to maintain a publicly available list of such appropriate qualifications, including those no longer offered by the third-level institutions, with the current lists being removed from legislation.

Such a list could be updated more quickly and easily as new courses and qualifications come on stream, the TSG says.

It would also give clarity to those seeking relief as to what reliefs they are entitled to with their qualifications.