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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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667B New arrangements for qualifying farmers.

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(1) In this section “qualifying farmer” means an individual who—

(a) in the year 2007 or any subsequent year of assessment first qualifies for grant aid under the scheme of Installation Aid for Young Farmers operated by the Department of Agriculture and Food under Council Regulation (EEC) No. 797/85 of 12 March 19851 or that Regulation as may be revised from time to time, or

(b) (i) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the year 2007 or any subsequent year of assessment,

(ii) has not attained the age of 35 years at the commencement of the year of assessment referred to in subparagraph (i), and

(iii) at any time in the year of assessment so referred to satisfies the conditions set out in subsection (2) or (3).

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(1) In this section “qualifying farmer” means an individual—

(a) (i) who in the year of assessment 2007 or any subsequent year of assessment first qualifies for grant aid under the scheme of Installation Aid for Young Farmers operated by the Department of Agriculture, Food and the Marine under Council Regulation (EEC) No. 797/85 of 12 March 19851 or that Regulation as may be revised from time to time, or

(ii) who—

(I) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the year of assessment 2007 or any subsequent year of assessment,

(II) has not attained the age of 35 years at the commencement of the year of assessment referred to in clause (I), and

(III) at any time in the year of assessment so referred to satisfies the conditions set out in subsection (2) or (3),

and

(b) who, where the requirements of subparagraph (i) or (ii) of paragraph (a) are first satisfied in the year of assessment 2012 or any subsequent year of assessment (in this paragraph referred to as the “first year of assessment”), submits a business plan to—

(i) Teagasc, for the purpose of this section, or

(ii) Teagasc or the Minister for Agriculture, Food and the Marine, for any other purpose,

on or before 31 October in the year following the first year of assessment.

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(2) The conditions required by this subsection are that the individual, referred to in the definition of “qualifying farmer” in subsection (1), is the holder of a qualification set out in the Table to this section (in this section referred to as the “Table”).

(3) The conditions required by this subsection are that the individual, referred to in the definition of “qualifying farmer” in subsection (1), is the holder of a letter of confirmation from Teagasc confirming satisfactory completion of a course of training, approved by Teagasc, for persons who in the opinion of Teagasc are restricted in their learning capacity due to physical, sensory, or intellectual disability or to mental health.

(4) For the purposes of subsection (2) where Teagasc certifies that—

(a) any other qualification corresponds to a qualification set out in the Table, and

(b) that other qualification is deemed by [12]>the National Qualifications Authority of Ireland<[12][12]>the Qualifications and Quality Assurance Authority of Ireland<[12] to be at least at a level equivalent to that of the qualification set out in the Table,

then that other qualification will be treated as if it were the qualification set out in the Table.

(5) In the case of a qualifying farmer—

(a) section 666(1) will apply as if “100 per cent” were substituted for “25 per cent”, and

(b) paragraph (a) will apply in computing a person’s trading profits for an accounting period in the case of an individual who becomes a qualifying farmer at any time in the period beginning on or after 1 January 2007 and ending on or before [2]>31 December 2008<[2][4]>[2]>31 December 2010<[2]<[4][8]>[4]>31 December 2012<[4]<[8][23]>[8]>31 December [20]>2015<[20][20]>2018<[20]<[8]<[23][27]>[23]>31 December 2021<[23]<[27][27]>31 December 2022<[27], for the year of assessment in which the individual becomes a qualifying farmer and for each of the 3 immediately succeeding years of assessment.

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(5A) (a) In this subsection—

qualifying period”, in relation to a qualifying farmer, means the year of assessment in which an individual becomes a qualifying farmer and each of the 3 immediately succeeding years of assessment;

relevant tax” means any income tax or universal social charge;

relief” means an amount equivalent to an amount determined by the formula—

A — B

where—

A is the amount of relevant tax that would be payable by a qualifying farmer for a year of assessment falling within the qualifying period computed as if subsection (5) had not been enacted, and

B is the amount of relevant tax payable by the qualifying farmer for that year of assessment.

(b) [24]>Where<[24][24]>Subject to subsection (5B), where<[24] a qualifying period commences in the year of assessment 2012 or any subsequent year of assessment, the qualifying farmer shall be entitled to relief in respect of deductions under section 666(1), by virtue of subsection (5), of an amount not exceeding—

(i) in the aggregate in the qualifying period, €70,000, and

(ii) in any one year of assessment falling within the qualifying period, €40,000.

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(5B) The aggregate amount of relief, within the meaning of subsection (5A), granted to a qualifying farmer under this section, section 667D and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €€70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 20143 or that Regulation as may be revised from time to time.”,

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(6) An individual who, at any time before 31 March 2008, satisfies the conditions referred to in paragraph (b)(iii) of the definition of “qualifying farmer” in section 667A (1) will be deemed to satisfy the conditions referred to [10]>in paragraph (b)(iii) of the definition of “qualifying farmer” in subsection (1)<[10][10]>in paragraph (a)(ii)(III) of the definition of “qualifying farmer” in subsection (1)<[10].

TABLE

1. [13]>Qualifications awarded by the Further Education and Training Awards Council<[13][13]>Qualifications awarded by the Qualifications and Quality Assurance Authority of Ireland<[13]:

(a) Level 6 Advanced Certificate in Farming;

(b) Level 6 Advanced Certificate in Agriculture;

(c) Level 6 Advanced Certificate in Dairy Herd Management;

(d) Level 6 Advanced Certificate in Drystock Management;

(e) Level 6 Advanced Certificate in Agricultural Mechanisation;

(f) Level 6 Advanced Certificate in Farm Management;

(g) Level 6 Advanced Certificate in Machinery and Crop Management;

(h) Level 6 Advanced Certificate in Horticulture;

(i) Level 6 Advanced Certificate in Forestry;

(j) Level 6 Advanced Certificate in Stud Management;

(k) Level 6 Advanced Certificate in [5]>Horsemanship.<[5][5]>Horsemanship;<[5]

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(l) Level 6 Specific Purpose Certificate in Farm Administration.

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2. [14]>Qualifications awarded by the Higher Education and Training Awards Council<[14][14]>Qualifications awarded by the Qualifications and Quality Assurance Authority of Ireland<[14]:

(a) Higher Certificate in Agriculture;

(b) Bachelor of Science in Agriculture;

(c) Higher Certificate in Agricultural Science;

(d) Bachelor of Science in Agricultural Science;

(e) Bachelor of Science (Honours) in Land Management, Agriculture;

(f) Bachelor of Science (Honours) in Land Management, Horticulture;

(g) Bachelor of Science (Honours) in Land Management, Forestry;

(h) Higher Certificate in Engineering in Agricultural Mechanisation;

(i) Bachelor of Science in Rural Enterprise and Agri-Business;

(j) Bachelor of Science in Agriculture and Environmental Management;

(k) Bachelor of Science in Horticulture;

(l) Bachelor of Arts (Honours) in Horticultural Management;

(m) Bachelor of Science in Forestry;

(n) Higher Certificate in Business in Equine Studies;

(o) Bachelor of Science in [15]>Equine Studies.<[15][15]>Equine Studies;<[15]

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(p) Higher Certificate in Science [18]>Applied Agriculture.<[18][18]>Applied Agriculture,<[18]

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(q) Bachelor of Science (Honours) in [21]>Sustainable Agriculture.<[21][21]>Sustainable Agriculture,<[21]

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[22]>(r) Bachelor of Science (Honours) in Agriculture.<[22]

3. Qualifications awarded by other third level institutions:

(a) Bachelor of Agricultural Science — Animal Crop Production awarded by University College Dublin;

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(aa) Bachelor of Agricultural Science — Agri-Environmental Science awarded by University College Dublin;

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(b) Bachelor of Agricultural Science — Animal Science awarded by University College Dublin;

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(ba) Bachelor of Agricultural Science – Animal Science Equine awarded by University College Dublin;

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(bb) Bachelor of Agricultural Science – Dairy Business awarded by University College Dublin;

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(c) Bachelor of Agricultural Science — Food and Agribusiness Management awarded by University College Dublin;

(d) Bachelor of Agricultural Science — Forestry awarded by University College Dublin;

(e) Bachelor of Agricultural Science — Horticulture, Landscape and Sportsturf Management awarded by University College Dublin;

(f) Bachelor of Veterinary Medicine awarded by University College Dublin;

(g) Bachelor of Science in Equine Science awarded by the University of Limerick;

(h) Diploma in Equine Science awarded by the University of Limerick.”.

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(7) This section shall apply to a qualifying farmer who comes within the definition of [26]>small and medium-sized enterprises” in Article 2 of Commission Regulation (EC) No. 1857/2006 of 15 December 2006<[26][26]>microenterprise or small enterprise in Article 2 of Annex I to Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time<[26]2, and in respect of whom subsection (5) applies for the year of assessment 2012 or any subsequent year of assessment.

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Footnote

1 OJ No. L93, 30.3.1985, p.6

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2 OJ No. L358, 16.12.2006, p.7

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3 OJ No. L193, 1.7.2014, p.1

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[1]

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Inserted by FA07 s24(1)(c). This section comes into operation on the making of an order to that effect by the Minister for Finance.

[2]

[-] [+]

Substituted by F(No.2)A08 s18(1)(b). This section comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.

[3]

[+]

Inserted by FA10 s14. Deemed to have come into force and takes effect as on and from 1 January 2010.

[4]

[-] [+]

Substituted by FA11 s25(1)(c). Comes into operation on such day or days as the Minister for Finance may be order appoint and different days may be appointed for different purposes or different provisions.

[5]

[-] [+]

Substituted by FA12 s20(b). Deemed to have come into force and takes effect on and from 1 January 2012.

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Inserted by FA12 s20(c). Deemed to have come into force and takes effect on and from 1 January 2012.

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Substituted by FA13 s20(1)(b). With effect from 3 October 2013 per S.I. No. 378 of 2013.

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Substituted by FA13 s20(1)(c). With effect from 3 October 2013 per S.I. No. 378 of 2013.

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Inserted by FA13 s20(1)(d). With effect from 3 October 2013 per S.I. No. 378 of 2013.

[10]

[-] [+]

Substituted by FA13 s20(1)(e). With effect from 3 October 2013 per S.I. No. 378 of 2013.

[11]

[+] [+]

Inserted by FA13 s20(1)(f). With effect from 3 October 2013 per S.I. No. 378 of 2013.

[12]

[-] [+]

Substituted by F(No.2)A13 s20(1)(a). Applies with effect from 6 November 2012.

[13]

[-] [+]

Substituted by F(No.2)A13 s20(1)(b)(i). Applies with effect from 6 November 2012.

[14]

[-] [+]

Substituted by F(No.2)A13 s20(1)(b)(ii). Applies with effect from 6 November 2012.

[15]

[-] [+]

Substituted by F(No.2)A13 s20(1)(b)(iii)(I). Comes into operation on 1 January 2014.

[16]

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Inserted by F(No.2)A13 s20(1)(b)(iii)(II). Comes into operation on 1 January 2014.

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Inserted by F(No.2)A13 s20(1)(b)(iv). Comes into operation on 1 January 2014.

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Substituted by FA14 s20(d)(i). Comes into operation on 1 January 2015.

[19]

[+]

Inserted by FA14 s20(d)(ii). Comes into operation on 1 January 2015.

[20]

[-] [+]

Substituted by FA15 s19(2)(d)(i). Comes into operation on 1 January 2016.

[21]

[-] [+]

Substituted by FA15 s19(2)(d)(ii)(I). Comes into operation on 1 January 2016.

[22]

[+]

Inserted by FA15 s19(2)(d)(ii)(II). Comes into operation on 1 January 2016.

[23]

[-] [+]

Substituted by FA18 s21(c)(i). Comes into operation on 1 January 2019.

[24]

[-] [+]

Substituted by FA18 s21(c)(ii). Comes into operation on 1 January 2019.

[25]

[+] [+]

Inserted by FA18 s21(c)(iii). Comes into operation on 1 January 2019.

[26]

[-] [+]

Substituted by FA18 s21(c)(iv). Comes into operation on 1 January 2019.

[27]

[-] [+]

Substituted by FA21 s24(c). Comes into operation on 1 January 2022.