In addition to the announcement of a decrease in the farmers’ flat rate addition for VAT in 2022 (see VAT measures), stock relief under section 666 TCA 1997 is extended for a further three years and enhanced stock relief is extended for a further year. The young trained farmer stamp duty relief will also continue to the end of next year.
Stock relief
Section 666 TCA 1997 is being extended for a further three years. This section provides for stock relief at a rate of 25 percent of the amount by which the value of farm trading stock at the end of an accounting period exceeds the value of farm trading stock at the beginning of the accounting period.
Section 667B TCA 1997, and Section 667C TCA 1997, which provide for, respectively, enhanced stock relief at a rate of 100 percent for young trained farmers; and at the rate of 50 percent for farmers who are partners in registered farm partnerships are both being extended for a further year.
Young trained farmer stamp duty relief
This measure extends the full relief from stamp duty on the conveyance of farm land available, which would normally be charged at 7.5 percent, to eligible young (i.e. not yet 35 years old) trained farmers, provided for under section 81AA SDCA 1999 to the end of 2022.
As the enhanced stock relief measures for young trained farmers and farm partnerships and young trained farmer stamp duty relief are deemed to be a State Aid, which are allowable under the Agriculture Block Exemption Regulation, scheduled to expire on the 31 December 2022, the Minister is limited in extending these reliefs.
However the Minister is hopeful, based on advised by the Department of Agriculture, that reliefs of this nature will continue to be considered an acceptable form of State aid under the terms of any revised regulation. As a result the Minister for Finance hopes to be able to provide for a further extension to these reliefs next year.
LOADING...