Revenue Note for Guidance

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Revenue Note for Guidance

667B New arrangements for qualifying farmers

Summary

Any individual who achieves a level of academic training set out in the Table to this section and who commences farming in the period beginning on or after 1 January 2007 and ending on or before 31 December 2022 (but refer to notes on subsection (5)(b)) is entitled to the enhanced stock relief of 100% for four years instead of the normal rate of 25%. Any person who achieved the academic and training standards under either section 667 or 667A is deemed to satisfy the requirements of this section.

The names of the awarding bodies have been changed arising from the enactment of the Qualifications and Quality Assurance (Education and Training) Act 2012. This is effective from 6 November 2012 as provided for by that Act

Details

This section comprises 7 subsections as follows:

“qualifying farmer” is defined as—

  • (1)(a)(i) an individual who in 2007 or a subsequent year of assessment first qualifies for the Scheme of Installation Aid for Young Farmers operated by the Department of Agriculture, Food and the Marine under EU Regulations, or
  • (1)(b)(ii) first becomes chargeable to tax under Case I of Schedule D from farming in 2007 or a subsequent year,
  • is under 35 at the start of that year, and
  • at any time in that year satisfies the conditions set out in subsection (2) or (3).

and

  • (1)(b) submits a business plan to Teagasc for the purposes of section 667B or, to Teagasc or the Minister for Agriculture, Food and the Marine for any other purpose, on or before 31 October of the year of assessment following the year of assessment in which the individual first becomes a qualifying farmer.

(2) The individual is required to be the holder of a qualification set out in the Table to the section.

(3) The individual is also required to have a letter of confirmation from Teagasc confirming satisfactory completion of a Teagasc approved course of training for persons with a physical, sensory, or intellectual disability, or are restricted in their learning capacity due to mental health.

(4) For the purposes of subsection (2), where Teagasc certifies that another qualification corresponds to one set out in the Table and where the Qualifications and Quality Assurance 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.

(5)(a) Where this section applies, stock relief (section 666) is given at the rate of 100% instead of the normal 25% rate.

(5)(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 2007 and on or before 31 December 2022. In such circumstances the 100% stock relief applies in the year of assessment in which the individual qualifies and in each of the succeeding 3 years of assessment.

(5)(A) The amount of the relief received by a qualifying farmer, who first qualifies in the year 2012 or in a subsequent year, cannot exceed €40,000 in a single tax year or in aggregate €70,000 over 4 years.

A lifetime ceiling of €70,000 applies for State Aid purposes to the amount of aid granted to a young trained farmer under the Agricultural Block Exemption Regulation (paragraph 7 of Article 18 of the Commission Regulation (EU) No. 702/2014). This means that the amount of tax relief received by a qualifying farmer must be aggregated across the relevant schemes: i.e. section 667B, section 667D and section 81AA SDCA 1999. The cash equivalent of the tax relief received cannot exceed €70,000.

(6) Provision is made for individuals, who at any time before 31 March 2008 satisfy the educational/training requirements referred to in paragraph (b)(iii) of the definition of “qualifying farmer” in section 667A(1), to be deemed to have satisfied the corresponding conditions of “qualifying farmer” as required by subsection (1).

(7) The 100% rate of stock relief applies for the year of assessment 2012 or any subsequent year of assessment only where the qualifying farmer falls within the definition of microenterprise or small enterprise in Article 2 of Annex I to Commission Regulation (EU) No. 702/2014 for the year of assessment in question.

Relevant Date: Finance Act 2021