Budget 2014: What will it mean for you?

Tensions are rising ahead of tomorrow’s budget. This is particularly so for people in the agribusiness sector, who are apprehensive that taxation measures together with expenditure cuts will create threats to this industry instead of opportunities for growth.

So what are the key tax areas that could impact on farming families and their businesses? In order for the farming sector to flourish, it is crucial that more get involved in farming from a young age. Succession planning and the transfer of farms from the older generation to younger farmers plays a crucial role here and taxation is vital in facilitating such transfers.

With this in mind, many farming families will be very anxious that there is no change to the current Capital Acquisitions Tax (CAT) Agricultural Relief, available on the transfer of farms from parents to children. This relief applies so that the value of the farm assets can be reduced by 90% and the transaction may be covered or partially covered by lifetime gift/inheritance tax thresholds.