Capital gains tax relief in Budget 2013 can save the farmer €56,447

The new relief on capital gains tax (CGT) in agricultural land transactions announced in Budget 2013 can save a farmer €56,447 — where he sells 10 hectares away from the yard and buys 12 hectares beside the yard.

This example is given in the update by Oak Park-based Financial Specialist James McDonnell on restructuring relief in the current Today’s Farm Teagasc magazine.

In the example, a farmer sells 10 hectares situated five miles away, for €260,000 with disposal costs of €6,000, so the net disposal value is €254,000.