Revenue clarifies tax relief worry for young farmers
Macra na Feirme has said it welcomes clarification from the Revenue Commissioners on stamp duty rates for young farmers.
Macra na Feirme National President James Healy has welcomed clarification from the Revenue Commissioners that in a case where Young Farmer Stamp Duty relief is applied to the transfer of property and land only the lower rate of 1pc stamp duty will count towards the €70,000 limit on young farmer taxation reliefs.
This should finally bring clarity in the application of tax relief for farm transfers, he said.
Without Young Farmer Stamp Duty relief, a rate of 6% stamp duty applies and there had been fears that the full 6pc difference would count towards a young farmer’s €70,000 limit. Following discussions between Macra na Feirme, the Department of Agriculture, Food and the Marine and other stakeholders, the Revenue Commissioners clarified that where Consanguinity Relief is applied, only the 1pc rate will be placed against the Young Farmers €70,000 lifetime limit.
The Macra na Feirme National President said farm families and professionals in legal and accountancy finally have clarification on the tax implications for farm transfers which will remove the barrier that had halted the transfer of land in recent months.
However, Mr Healy said ‘State Aid rules as they apply to young farmer measures need to be reassessed at EU level, as supporting young farmers under the CAP with one hand and restricting them through State Aid rules on the other hand is not beneficial for generational renewal’.
He added, ‘Macra na Feirme will continue to lobby on the matter of the State Aid restrictions on young farmers at Irish and EU level. Encouraging young farmers into agriculture is key to the future of our sector. Generational renewal is a key policy at EU level, regulations and restrictions that impede this must be challenged and changed for the better of farming.’