20% CGT on all entitlement sales
The handbook, which includes a comprehensive guide to entitlements and the Single Payment Scheme, has been compiled for the Agricultural Consultants Association (ACA) by Tipperary-based farm and forestry consultants, O’Sullivan & Co.
The handbook’s 375 pages also advise farmers and landowners on the full range of farm schemes and planning for farm families.
Payments received under the Single Payment Scheme will be subject to income tax in the same way as subsidies are, according to the handbook.
The purchase of entitlements is a capital acquisition, and as such is not allowable against income tax, the consultants say.
Farmers are also advised that failure to submit an area aid form in 2005, with a minimum area of 0.3 hectares, will result in permanent forfeiture of the entitlements allocated.
But the scheme is guaranteed until 2013 for farmers who submit an area of land in hectares at least equal to their number of entitlements each year.
A farmer may opt to till the land and grow corn, but there is a requirement that there is no significant reduction in the area under permanent pasture in Ireland. However, an increase of 50% in the national tillage area would only lead to a 5% reduction in permanent pasture, farmers are advised in the handbook.
The ACA Farmers Handbook 2005 is available for €18 including post and packing from O’Sullivan & Co, Bank House, Carrick-on-Suir, Co Tipperary.
