The flat-rate VAT refund is being reduced from 5.2% to 4.8% from Jan 1, 2013.
It is reviewed annually, based on the most recent three-year national figures for farm sales and purchases (see report by Kieran Coughlan on this page).
CGT Relief on Farm Consolidation: Capital gains tax relief will apply where the proceeds of the sale of farm land are reinvested to restructure farms.
The sale and purchase of the farm land must occur within 24 months of each other, and the initial transaction must occur between Jan 1, 2013, and Dec 31, 2015. The relief will also apply to farm land swaps, subject to certification by Teagasc for all transactions seeking relief. The commencement of the relief is subject to EU state aid approval.
Extension of Stock Relief: The general 25% stock relief and the 100% relief for young trained farmers are being extended to the end of 2015.
As regards registered farm partnerships, the definition is to be extended to include others, such as beef production partnerships, for the purposes of 50% stock relief.
This is subject to EU state aid clearance.
Farm Partnerships: The definition of registered farm partnerships is being broadened to include non-dairy farmers for the special 50% stock relief rate.
CAT Threshold: Tax-free thresholds for CAT for all groups is reduced by 10% from December 5.
CAT & CGT Rates: The rates of Capital Acquisitions Tax and Capital Gains Tax are increased from 30% to 33% from December 5, 2012.
Stamp Duty: Relief for young trained farmers will be renewed in 2013, details of which will be contained in the Finance Bill.
Carbon Tax: No increase in carbon tax on farm diesel, auto diesel or petrol.
It is being extended to solid fuels on a phased basis; a rate of €10/t from May 1, 2013, and €20/t from May 1, 2014.
TAMS: Funding of €10m for dairy modernisation and €3m for sheep fencing scheme.
Additional funding for the grants due for pig and poultry welfare. Funding will be sufficient for the water harvesting schemes also.
Horticulture: Funding allocation of €3.25m for horticulture sector for 2013.
Rural Social Scheme: No increase in the number of places, set at 2,600 for 2013.
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