Timely farm transfers incentivised in budget

AN ENHANCED 50% stock relief (100% for certain young trained farmers) for registered farm partnerships until 2016, worth €5m per year, was announced by Finance Minister Michael Noonan in his budget speech on Tuesday.

Measures to incentivise timely farm transfers were also announced — including full retirement relief from capital gains tax for intra-family transfers by individuals aged 55 to 66. An upper limit of €3m on retirement relief for business and farming assets disposed of within the family is introduced, where the individual transferring the assets is aged over 66 years. (The current unlimited amount applies for a transitional period of two years, for individuals currently aged 66, or who reach that age before 2014).

The current upper limit of €750,000 for assets transferred outside the family for individuals aged between 55 and 66 years will be maintained. The upper limit for retirement relief for business and farming assets transferred outside the family is reduced from €750,000 to €500,000 for individuals aged over 66 years. (The current upper limit of €750,000 applies for a transitional period of two years.)