Revenue has updated the Stamp Duty Manuals that provide guidance on relief from stamp duty in respect of transfers of agricultural land to young trained farmers and in respect of certain leases of farmland executed on or after 1 July 2018. Relief from stamp duty in respect of transfers of agricultural land to young trained farmers is provided under section 81AA SDCA 1999. The updated manual reflects the Finance Act 2024 amendments whereby: the active farmer condition may be met where the land is farmed through a company, where certain conditions are satisfied; a clawback will apply where the transferee fails to comply with the condition to farm the land for 50 percent of their normal working time. Stamp duty relief in respect of certain leases of farmland executed on or after 1 July 2018 is provided under section 81D SDCA 1999. It applies in respect of a lease for a term of 6 to 35 years of any lands which are used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. The updated manual reflects the Finance Act 2024 amendments whereby: the legislation states that this relief, being a State aid, is granted in accordance with Commission Regulation (EU) No 1408/2013 of 18 December 2013; the relief may be claimed where the lessee is a company, where certain conditions are met.

Revenue has updated the Tax and Duty Manual which provides guidance on a tax deduction for farmers for increases in stock values, which is known as "stock relief" under section 666 TCA 1997 to reflect the extension of the relief to 31 December 2027.

Revenue has updated the Tax and Duty Manual which provides guidance on accelerated capital allowances for farm safety equipment under section 285D TCA 1997 to reflect amendments in Finance Act 2024. The list of items qualifying for accelerated capital allowances for farm safety equipment has been expanded to include certain equipment that qualifies for Targeted Agricultural Modernisation Scheme grants including calving gates, livestock monitors, floodlights for farmyards and slider/roller doors for agricultural buildings.

Revenue has published an overview of the EU VAT SME Scheme. Current provisions allow Member States to set their national VAT registration thresholds within EU rules whereby, in general, a business operating below these thresholds and making domestic supplies of goods and services is not required to register and account for VAT. However, no de minimis threshold applies where an Irish business makes supplies in another Member State. They must immediately register and account for VAT in the Member State where the supply takes place. From 1 January 2025, the EU VAT SME Scheme will allow eligible small traders the option to avail of thresholds in the other Member State and not register for VAT when supplying goods and services there.  The scheme is optional and Irish businesses wishing to register to use the scheme in other Member States must make a formal application to Revenue. The eligibility requirements include that the business must: be established for VAT purposes in Ireland only; not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made; not exceed the Union turnover threshold of €100,000; be registered in Ireland to use the scheme (separate registration process); and       file quarterly reports once registered. Further information in available in eBrief No. 315/24.

Revenue has updated the Tax and Duty Manual which provides guidance on the Residential Premises Rental Income Relief (RPRIR) available under section 480C TCA 1997. The updated manual reflects amendments introduced by Finance Act 2024. The key changes are as follows: Relief is not available where a landlord has an overall Case V rental loss or where the landlord's overall rental profit is lower than the amount of the RPRIR (paragraph 2). The death of a landlord will not trigger a claw-back of RPRIR (paragraph 4). Where an individual is no longer entitled to the relief, the amount of relief clawed back will be the same as the amount of relief claimed.

Revenue has published a new Tax and Duty Manual regarding scenarios where section 299(1) TCA 1997 applies to the leasing of machinery and plant. This section provides that where the burden of wear and tear of a leased asset falls on the lessee, they may be entitled to claim capital allowances on the leased asset. The manual sets out when section 299(1) applies to a lease and outlines the tax implications for both lessors and lessees.

Revenue has published its opening arrangements for the holiday period. Revenue will generally provide normal services apart from on 25 and 26 December 2024 and 1 January 2025. Revenue’s public offices will remain closed from 25 December 2024 to 1 January 2025. The ROS helpdesk, Local Property Tax (LPT) and Vacant Homes Tax (VHT) line and Collector General's credit card lines will operate as normal with certain exceptions. Wednesday 25 December to Monday 30 December: The Stamp Duty Helpline will be closed from Wednesday 25 December to Monday 30 December inclusive and on 1 January 2025. Tuesday 24 December and Tuesday 31 December 2024: The ROS Helpdesk will open from 9.00 to 13.00. LPT and VHT lines will open from 9.30 to 13.30. Collector General's credit card lines will open from 9.30 to 13.30. 

Revenue has contacted us via email advising that because the Capital Gains Tax (CGT) payment deadline for disposals made between 1 January 2024 and 30 November 2024 falls on Sunday 15 December 2024, they are extending the payment deadline to Monday 16 December 2024. This means that Revenue will accept payments for that period on Monday as if the payment was received on Sunday. In their email they noted the following: “It is noted that the Sunday deadline is a payment deadline rather than a return filing deadline. As a once-off concession, payments received on Monday 16 December 2024 will be treated as if they were made by the Sunday deadline.” The Institute, under the auspices of the CCAB-I, requested this extension at the most recent Tax Administration Liaison Committee (TALC) Collections meeting and as well at the most recent Main TALC meeting. We are pleased to announce this vital extension which we hope will ease the compliance burden on our members at this time.

Chartered Accountants Ireland has today circulated the Institute's Key Policy Priorities, based on member engagement, as discussions commence on the formation of the next Government. Focused on supporting small business and improving childcare provision for working parents, we will continue to amplify our members' voices as the negotiating process continues.

In Irish news, the November Exchequer figures confirm tax revenues continue to perform well, and the Minister for Finance welcomes strong results for the domestic economy. In UK news, HMRC recently reduced its interest rates for late payments and repayments and the Scottish Budget 2025/26 was announced last week. In International news, the EU Commission has welcomed the Court of Auditors’ special report on the EU’s efforts to combat harmful tax regimes.  Ireland The November Exchequer figures confirm tax revenues continue to perform well. The Minister for Finance has welcomed strong results for the domestic economy. UK HMRC recently reduced its interest rates for late payments and repayments. The Scottish Budget 2025/26 was announced last week. International The EU Commission has welcomed the Court of Auditors’ special report on the EU’s efforts to combat harmful tax regimes. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner.

Chartered Accountants Ireland is warning that family-owned businesses in Northern Ireland, including those in the agricultural sector, will be the biggest losers from the recent tax changes announced in the Autumn Budget. Impacted family businesses are now facing a triple whammy of mounting employment costs, higher Capital Gains Tax on sale or succession, and an unexpected Inheritance Tax bill when passing businesses on to the next generation. Commenting, Janette Burns, Chair of the Institute’s Northern Ireland Tax Committee said: “Northern Ireland family-owned businesses are the heartbeat of our economy with around 80% of businesses here either family owned or managed. Many of these businesses, particularly those who employ minimum wage workers, will face a stark increase in their wage bill from April 2025 as a result of the changes to Employer’s National Insurance Contributions and the National Minimum Wage. For example, a business with 50 part-time staff aged 18-20 working around 15 hours per week will have to find an additional £65,000 from April 2025 just to pay wages. This will particularly impact businesses reliant on part time staff such as in the retail and care sectors but especially for already struggling hospitality businesses.” Reflecting further on what’s still to come for Northern Ireland family-owned businesses, Janette commented: “From 30 October 2024 the rates of Capital Gains Tax have already increased from 10% to 18% and 18% to 24% ahead of a stepped reduction in the benefit of a key Capital Gains Tax relief, Business Asset Disposal Relief, commencing from April 2025. Then, from April 2026 the benefit of two key Inheritance Tax reliefs is being reduced by 50% for businesses (including farms) worth more than £1 million. This means that further down the tracks the same family business owners are facing a significantly higher tax bill when the time comes for the next generation to take over. Those who are approaching retirement will now pay more Capital Gains Tax either when they sell the business or pass it on to their successors whilst still alive. On a death transfer, the Budget’s Inheritance Tax changes from April 2026 mean that whomever inherits the business will be hit with an extra 20% Inheritance Tax bill on any value over £1 million. Figures suggest that an estimated 33% of farmers in Northern Ireland will be affected. Many family-owned businesses and farms here started out small 20 or 30 years ago and through sheer hard work, sacrifice, and determination have grown in size. It would not be unusual for those businesses to now be worth several million pounds. For a business or farm worth £2million, these changes will add as much as £200,000 onto the family Inheritance Tax bill. The reality is that many will be forced to sell the business or farm to pay this new bill.”

Revenue has updated the Tax and Duty Manual regarding the deduction for Digital Services Tax (DST) to include the Canadian DST in the list of DSTs which are accepted as being deductible where incurred wholly and exclusively for the purposes of a trade.