Agri-tax measures

Oct 22, 2018

The Bill introduced a life-time cap of €70,000 on the aggregate of certain Stamp Duty and CGT tax reliefs available to young farmers.  The measure is framed in the context of meeting anti-State aid provisions set out by the EU.  A number of technical corrections to align Irish laws with EU regulations were also made to the young trained farms relief and farm consolidation relief which do not impact the sustenance of these reliefs. 

Income averaging

Farmers or their spouse/civil partner with an off-farm income from a trade or profession can avail of the five-year income averaging relief per section 657 TCA 1997 as announced on Budget day while stock relief (section 666 TCA 1997) and young farmer stamp duty relief (section 81AA SDCA 1999) are extended to 2021.  Chartered Accountants Ireland under the auspices of the CCAB-I, lobbied to allow farmers with off-farm income from a trade or profession access to income averaging in a submission to Government earlier this year.   

Farm restructuring

The rules for CGT relief on farm restructuring under section 604B TCA 1997 are amended to specify when Revenue should receive information supporting a claim for this relief.  For claims between 1 July 2016 and 31 December 2018, the information must be returned to Revenue in the 2018 income tax return and for claims for 2019 onwards, the information should be provided in the individual’s corresponding income tax return for the relevant year of assessment.