667A Further provisions for qualifying farmers

Summary

This section replaces the relief provided for in section 667 for young farmers who fully qualify on or after 1 January 2004 and before 31 December 2008. The relief is the same as that provided for in section 667, i.e. a deduction is allowed of 100% of the year on year increase in stock values for 4 years instead of the usual 25%, beginning in the year in which the individual commences farming. Thereafter the rate reverts to 25% annually. The principal changes relate to the academic and training requirements necessary to qualify.

The specific changes are as follows:

• The list of acceptable academic qualifications is changed to reflect the fact that many of the older courses, referred to in the Table to section 667 are no longer available. In addition, the accreditation body for courses in the non-university sector is henceforth the National Qualifications Authority of Ireland (NQAI) in the form of either the Further Education and Training Awards Council (FETAC) or the Higher Education and Training Awards Council (HETAC).
• The Teagasc training courses in Farm Management and Agriculture/Horticulture have been revamped and in circumstances where these courses are required, it is necessary to successfully complete them as against simple attendance which was all that was previously required.
• Similarly a 2 year attendance requirement at 3rd level education, which previously satisfied the conditions in certain circumstances, is replaced with a requirement to pass the appropriate exams.
• Provision is made to enable Teagasc to certify individuals with disabilities who complete a special course of training also to qualify. While such individuals may be capable of being successful farmers, they may have difficulty in achieving the necessary academic qualification requirements for the purposes of qualifying for this relief.

Provision is also made to ensure that individuals, who were partially qualified prior to 1 January 2004, may carry the elements of the qualification achieved before 1 January 2004 through into the new scheme. This would mean for example, that an individual who had achieved an academic qualification some years ago but who was only proposing to begin farming this year will not have to go back and obtain any of the updated qualifications.

Details

Qualifying farmer

“Qualifying farmer” is defined as—

• (1)(a) an individual who in 2004 or a subsequent year of assessment first qualifies for the Scheme of Installation Aid for Young Farmers operated by the Department of Agriculture and Food under EU Regulations, or
• (1)(b)(i) first becomes chargeable to tax under Case I of Schedule D from farming in 2004 or a subsequent year of assessment,
• (1)(b)(ii) is under 35 at the start of that year, and
• (1)(b)(iii) at any time in that year satisfies the conditions set out in subsections (2), (3) or (4).

Qualifications

(2) To qualify the individual to be the holder of a qualification set out in the Table to the section, and

• (2)(a) Where the qualification is set out in paragraph 1(f) or 2(h) of the Table, the individual also has a FETAC certificate confirming success in a Teagasc approved course in Farm Management of at least 80 hours and in Agriculture/Horticulture of at least 100 hours, or
• (2)(b) where the qualification is set out in paragraph 3(b), 3(c) or 3(d) of the Table, the individual also has a FETAC certificate confirming success in a Teagasc approved course in Farm Management of at least 80 hours.

Requirement to pass exam or hold FETAC certificate

(3)(a) The individual must have passed the first 2 years exams in a full time third level course in any discipline, and

(3)(b) The individual must hold a FETAC certificate confirming success in a Teagasc approved course in Farm Management of at least 80 hours and in Agriculture/Horticulture of at least 100 hours.

Letter of confirmation from Teagasc

(4) The individual must have a letter of confirmation from Teagasc confirming satisfactory completion of a Teagasc approved course of training in the case of persons with a physical, sensory, mental health or intellectual disability.

Corresponding or equivalent qualifications

(5) For the purposes of subsection (2), where Teagasc certifies that another qualification corresponds to one set out in the Table and where the National Qualifications Authority of Ireland deems that qualification to be at least at an equivalent standard to the qualification set out in the Table, then that qualification will be treated as the qualification so set out in the Table.

Stock relief available

(6)(a) Stock relief (section 666) is given at the rate of 100% each year instead of the normal 25%.

(6)(b) Paragraph (a) is applied in computing farming income in the case of an individual who becomes a qualifying farmer on or after 1 January 2004 and before 31 December 2008. In such circumstances the 100% stock relief applies in that year and in each of the succeeding 3 years of assessment.

Transitional arrangements

(7) Provision is made for individuals who, as of 1 January 2004, had already some or all of the qualifications/courses necessary but who had not yet begun farming by that day.

• (7)(a) An individual, who had already acquired a qualification set out in the Table to section 667 or one certified by Teagasc as corresponding to such a qualification, is deemed to have acquired a corresponding qualification as set out in the Table to this section. This means that if the qualification acquired under the old scheme did not require any further course of training by Teagasc then neither does the qualification that individual is deemed to have acquired under the new scheme.
• Similarly, if the qualification under the old scheme required an 80 hour course of training in farm management, then the individual is deemed to have acquired a qualification under the new scheme which also requires this course.
• (7)(b) If the individual had satisfactorily attended a third level course for 2 years in any discipline (which was accepted under the old scheme) then that individual would be treated as having passed the second year examinations of a third-level course of at least 3 years’ duration for the purposes of the new scheme.
• (7)(c) If an individual had already got a certificate from Teagasc for satisfactory attendance at —
  1. an 80 hour course in Farm Management, or
  2. a 180 hour course in Agriculture/Horticulture,
  
  then that individual was regarded as having been successful in the comparable course for the purposes of the new scheme.

The Table sets out the list of qualifications which are acceptable for the purposes of the relief.

Relevant Date: Finance Act 2021