This year, as in previous years, a number of key reliefs for the agricultural sector have been extended. We outline these below in further detail.
Accelerated Capital Allowances scheme for slurry storage
The Accelerated Capital Allowances Scheme for the construction of slurry storage facilities by farmers has been extended for a further four years, now applying until 31 December 2029.
Under this measure, qualifying capital expenditure on slurry storage buildings and associated equipment may be written off at a rate of 50 percent per annum over two years, compared to the standard write-off periods of seven years for farm buildings and eight years for plant and machinery.
This accelerated relief continues to support investment in environmentally sustainable agricultural infrastructure by improving cash flow and reducing the effective tax burden on capital investment.
Farm Restructuring Relief extended and expanded
Finance Bill 2025 will provide for the extension of Farm Restructuring Relief to 31 December 2029, continuing support for farmers undertaking land consolidation and restructuring.
In addition to the extension, the scope of the relief is being broadened to include:
- Commercial forestry land, and
- Non-commercial woodland/forestry,
reflecting a more inclusive approach to land use within the agricultural sector.
These changes will be subject to separate commencement orders, pending the necessary notification and approval from the EU Commission under State Aid rules. Further operational details will be confirmed in due course.
Farm Consolidation Relief extended and scope expanded
You can read a full update on the announcements under our Stamp Duty section here.
Young Trained Farmer Stamp Duty Relief extended
You can read a full update on the announcements under our Stamp Duty section here.
Farmer’s Flat Rate VAT compensation revised for 2026
The Farmer’s Flat Rate Payment, which compensates unregistered farmers for VAT incurred on purchases, has been revised for 2026. The new rate will be 4.5 percent, down from 5.1 percent in 2025. This adjustment reflects the average VAT costs incurred by farmers, calculated using macroeconomic data compiled by the Central Statistics Office (CSO) and Revenue over the preceding three years.
The Flat Rate scheme continues to provide simplified VAT relief for farmers who choose not to register for VAT, helping to offset input costs without the administrative burden of full VAT compliance.
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