Focus on: Agri-Taxation

Oct 09, 2018

The Minister’s speech acknowledged the difficult year that faced those operating in the farming sector. A number of tax measures were announced to help alleviate the economic difficulties and plan for sustainability with Brexit posing specific challenges and threats.

Renewing the existing stock relief measures for a further three years

The Minister provided for a 3 year extension to the existing stock relief measures which aim to encourage investment in improving stock quality and output. The stock relief measures are:

  • 25 percent general stock relief on income tax
  • 50 percent stock relief on income tax for registered farm partnerships
  • 100 percent stock relief on income tax for certain young trained farmers

These measures are expected to have a full year cost to the exchequer of €8 million in 2019.

Income Averaging

To help support more farmers to cope with the problem of income volatility, the Minister removed restrictions relating to farmers with off-farm income which often prevented farmers from claiming income averaging.  

Income averaging allows eligible farmers to calculate their taxable income as the average of their income in the current year and the previous 4 years, smoothing their tax liability over 5 years. This is expected to have a full year cost of €2.5 million to the exchequer.

Young trained farmer stamp duty relief extended

There will be a 3 year extension of the Young Trained Farmer stamp duty relief to the end of 2021.  This relief was due to expire at the end of this year. The extension of this relief is expected to cost the exchequer €15 million in 2019.