Check those single farm payment claims

Now that the deadline for submitting your single farm payment application has passed, it’s an ideal time to double check that all is in order in relation to single farm payment entitlement purchases and sales.

Each year, entitlements are transferred by sale, lease, gift and inheritance. If you have been either a seller or disposer or recipient, then it’s worthwhile checking out the implications from a tax point of view. Entitlements can only be transferred to a person who has obtained a herd number. It is common for a parent to transfer their herd number to their son or daughter as part of transferring the family farm, however you should note that entitlements don’t automatically transfer with a herd number. Therefore, in these situations, it is necessary to complete a transfer form. The same procedure applies in the case of farmers who change their herd number from a sole name to joint husband and wife names. The transfer form is available from the Department of Agriculture.

Agricultural advisers are normally pretty clued up on completing these forms.