What tax changes farmers can expect in the upcoming budget

Writing off the cost of machinery and buildings along with the passing on of businesses with the benefit of business relief are the most important tax relief for farmers, as set out in the Tax Strategy Group papers

Presently, a farm or farm business worth up to €3.25m can be passed tax-free to a child.

The Tax Strategy Group published its papers last week, which outline a variety of tax policy choices for the Government to chew over in framing the budget choices for 2023.

Singularly, the biggest concession afforded to the farming sector is the capital allowance regime which allows farmers to write off the cost of machinery and farming buildings against their taxable income, with the tax forgone at over €540m for 2019.