Revenue Note for Guidance

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Revenue Note for Guidance

667C Special provisions for registered farm partnerships.


This section provides stock relief generally at the rate of 50% for farmers who are partners in registered farm partnerships and 100% for certain “qualifying farmers” within the meaning of section 667B (often referred to as young trained farmers), who are partners in such partnerships. It applies to accounting periods which commence on or after 1 January 2012 and which end on or before 31 December 2022.

This relief is subject to a maximum limit.

Sections 666 and 667B continue to apply to farmers who are not partners in registered farm partnerships.



“common agricultural payments” means any payment arising directly to a partner under the Common Agricultural Policy.

“excluded farm asset” means farm land or livestock or machinery used for a farming activity left out of the partnership by the terms of the partnership agreement, but cannot include beef, dairy or sheep farming.

“farm asset” means all farm land, entitlement to common agricultural payments and assets used for farming, but does not include excluded farm assets or farm land which is to be disposed of to an authority possessing compulsory purchase powers.

“farm land” means land in the State and includes a building situated on that land, other than buildings or parts of a building used as dwellings, occupied by a partner for the purpose of farming the land.

“Minister” means Minister for Agriculture, Food and the Marine.

“non-active partner” means, in the case of an individual, a person who spends not more than an average of at least 10 hours per week engaged in the activities of the several trade of the partnership during the accounting period or in the case of a company, a company whose officers and employees between them spend an average of not more than 10 hours per week engaged in the activities of the several trade during the accounting period.

“partner” means a person who is a partner in a registered farm partnership.

“primary participant” means the precedent partner, within the meaning of section 1007.

“Qualifying farmer” has the meaning assigned to it by section 667B.

“register” means the register of farm partnerships established and maintained by the Minister under and in accordance with this section and the regulations under subsection (4A).

“register of succession farm partnerships” shall be construed in accordance with section 667D(1).

“Registered Farm Partnership,” means a farm partnership entered on the register.

“several trade” has the meaning given to it by section 1008.

Register of farm partnerships

In order to be placed on the register, a farm partnership must satisfy the following conditions:

  1. the farm partnership must exist wholly or mainly for the purpose of carrying on a farming trade.
  2. the farm partnership must operate in accordance with a written partnership agreement which:
    1. complies with the Partnership Act 1890;
    2. includes the identity of the partners and the land, the ratio of the share in the partnership and the details of the operation of the partnership;
    3. is for a minimum of 5 years.
  3. the farm partnership must have at least 2 members but no more than 10.
  4. no member of the farm partnership may be a non-active partner.
  5. the members of the partnership must consist of:
    1. at least 1 partner in the farm partnership must be a person who has been engaged in the trade of farming on land owned or leased by that person consisting of at least 3 hectares of useable farm land for at least 2 years immediately preceding the date of formation of the partnership, and
    2. if there are partners not covered by (I) above, then at least 1 of those other partners must be an individual who is a trained farmer who is entitled to at least 20% of the profits of the partnership.
  6. the partners cannot hold farm assets, other than excluded assets, outside of the partnership. Where a farmer holds an interest in farm land that land must be either licenced or leased into the farm partnership.
  7. any payments arising to a partner from the trade of farming for the purposes of the farm partnership, shall be paid by the partner to the farm partnership.

Changes to farm partnership

The primary participant must notify the Minister of any change to the partnership within 21 days of the change. Failure of the primary participant to do so may result in the partnership being removed from the register from the date of the change, unless:

  1. the partnership remains eligible to be on the register; and
  2. the failure to notify is neither careless nor deliberate and is rectified as soon as it is realised.

The primary participant must notify the Minister prior to a new partner joining or an existing partner ceasing to be a partner and shall request the Minister to amend the relevant entry on the register accordingly. The Minister shall not approve such an alteration unless the Minister is satisfied that it is for bona fide commercial purposes.


A farm partnership which is formed between a farmer and a company of which that farmer is a director or has a shareholding, shall not be eligible to be a registered farm partnership.

Entry to and removal/suspension of farm partnerships from the register

The Minister shall only enter a partnership on the register if he/she is satisfied that the farm partnership has met the conditions set out in subsection (1A). If the Minister is not satisfied that the partnership is continuing to meet those conditions, the partnership shall be removed from the register with effect from the date it ceased to meet those conditions. A farm partnership may be suspended where an order has been made under section 9 of the Animal Health and Welfare Act 2013

Relief – where partner is not a “qualifying farmer”

This subsection, which is subject to subsection (3), amends a number of the provisions in section 666 for the purpose of this section. Section 666 provides for stock relief at the rate of 25% for farmers, other than certain qualifying farmers.

Firstly, it provides that stock relief at the rate of 50%, rather than 25% as provided for in section 666 (1), applies where a farmer, other than certain qualifying farmers, is a partner in a registered farm partnership.

Secondly, it substitutes a new subsection (4) in section 666 for the purposes of this section. This provides that the earlier stock relief deadlines in section 666 (4) of 31 December 2012 for companies and the year 2012 for individuals are extended to 31 December 2022 and the year 2022 respectively for the purposes of this section.

Relief – where partner is a “qualifying farmer”

A qualifying farmer, within the meaning of section 667B, who is a partner in a registered farm partnership, is entitled to the enhanced rate of relief of 100% for a four-year period as provided for in that section. Where appropriate, the qualifying farmer reverts to the 50% rate provided for in this section for registered farm partnerships, rather than to the standard rate of 25%.

The cash equivalent of the relief is limited to €7,500 over a three year period.

For a qualifying period commencing on or after 1 January 2014 the maximum amount of stock relief that can be claimed is increased to €15,000 in the aggregate in the qualifying period (3 years.)

Time Limits

The 50% rate of stock relief applies in respect of accounting periods commencing on or after 1 January 2012 and ending on or before 31 December 2022.


This subsection allows for the establishment of a register of farm partnerships as part of the process of extending the meaning of “registered farm partnership” for the purpose of this section.

Firstly, it provides that the Minister for Agriculture, Food and the Marine, after consulting with and with the approval of the Minister for Finance, may establish and maintain a Register of farm partnerships by regulations, and that such regulations may provide for a number of matters including:

  • ➢ different divisions of the register relating to different classes of farm partnerships,
  • ➢ the form and manner of, and information and documentation required for, an application for entry on the register,
  • ➢ the form and manner of registration,
  • ➢ the assignment of unique identifiers to partnerships included on the register and purposes for which and conditions subject to which, the identifier may be used,
  • ➢ procedures where subsection (1B) or subsection (1D)(b) applies,
  • ➢ the agricultural qualifications required by a person,
  • ➢ conditions relating to the distance between farm land to be used by partners, and
  • ➢ such supplemental, transitional and incidental matters that appear necessary and appropriate to the Minister.

Secondly, it provides that every regulation made under subsection (4A) must be laid before the Dáil and such regulations may be annulled by resolution of the Dáil.

Relevant Date: Finance Act 2021