612 Scheme for retirement of farmers

The European Communities (Retirement of Farmers) Regulations, 1974 were introduced to encourage older farmers to retire and provided that a farmer would get an annual pension and a capital sum (called a premium) in addition to the normal purchase price on the sale of the farm. Section 612 provides that any such capital sum or premium is not to be included in the consideration for the disposal of the farm. Thus, such capital sums or premia are exempt from capital gains tax.

Relevant Date: Finance Act 2021