Finance Bill ‘very costly’ for young farmers

Declan McEvoy, head of tax at the ifac professional services firm, has warned that the current draft of the Finance Bill contains some very costly provisions for young farmers.

Finance Bill ‘very costly’ for young farmers

By Stephen Cadogan

He said if the Bill is not amended to address these issues, it will turn the young farmers stamp duty relief from being a relatively simple relief into a massively complicated one which will not be kind to the up and coming new generation of farmers.

“From dealing with thousands of hard-working young farmers around the country, ifac know what a burden this change would be for them, in a year that has been very difficult for the sector.

“With Brexit and CAP reform looming, young farmers need all the help they can get.”

According to ifac, the Young Farmer stamp duty relief scheme is now clearly being treated as a start-up aid.

“All the planning and associated costs of both legal and tax will now be heaped on young farmers, which is unacceptable. If this goes ahead, it will prevent the young trained farmer from availing of relief on the purchase of land, and it could also prevent them from getting a second or subsequent transfer free of stamp duty.

“This will be very bad news for young farmers.”

Currently a lifetime ceiling of €70,000 applies to the amount of grant aid available to a young farmer across the young trained farmers stamp duty, stock relief for young farmers, and succession farm partnership schemes.

According to ifac, the Finance Bill proposes that anyone submitting a return from January 1 next, or tax returns for the 2019 year of assessment onwards must have regard to the amount of duty claimed since July 1, 2014, and the total amount should not exceed €70,000.

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