Securing the agri-sector

Oct 13, 2020

Budget 2021 remains largely unchanged for the farming community, as existing schemes and taxation measures remain. However, the Minister for Finance announced the extension of two major stamp duty relief initiatives for farmers.

Consanguinity Relief extended to 31 December 2023

The Stamp Duty relief provides, under certain conditions, for a 1 per cent rate of stamp duty to be applicable where a transfer of agricultural land (by sale/purchase, exchange or gift) is made to certain close relations, such as a mother to son or uncle to niece.

The standard rate of stamp duty applying to the transfer of agricultural land is 7.5 per cent.  The relief is designed to facilitate and encourage intergenerational farm transfers and is extended to 31 December 2023.

Farm Consolidation Relief extended to 31 December 2022

This relief provides for a reduced Stamp Duty rate of 1 per cent to apply on the sale and purchase of agricultural land when consolidating an existing farm.

VAT

The Minister also announced that the Farmers Flat Rate Addition will be increased from 5.4 per cent to 5.6 per cent from 1 January 2021.

 

Brexit and Agriculture

Under the Brexit funding package announced, the Department of Agriculture, food and the Marine will receive funding of €1.8 billion in 2021, out which a significant portion will go towards supporting businesses in mitigating the adverse trading environment as a result of Brexit. This fund will support the implementation of necessary health and safety controls for agri-food exports and imports to and from the UK after the end of the Brexit transition period this year.

Additionally, out of an additional €100 million Brexit fund awarded to the Department of Business, Enterprise and Innovation, €7 million will be allocated specifically help support the food processing industry, and additional funding for Bord Bia, the agency responsible for marketing and promoting Ireland’s food, drink, and agriculture industry. Read our Brexit section for complete Brexit coverage.