Budget tax adjustments a 'welcome benefit' for farm families
The reduction in the Universal Social Charge and the introduction of income tax credits for the self-employed have been welcomed by farming families, as experts say Budget 2016 reflects the "improvement in the general economy".
The changes announced in Budget 2016 by Finance Minister Michael Noonan, particularly the introduction of the €550 earned income tax credit, will be a "welcome benefit" for individual farmers who are currently facing an era of "depressed prices", according to Donncha Collins, a tax manager with FDC group.
Mr Collins said the changes "reflect the improvement in the general economy".
He also welcomed the increase in the Capital Acquisitions Tax Group A threshold from €225,000 to €280,000.
However, he said that maintaining the rate at 33pc meant that Ireland "continues to operate one of the most punitive regimes in the OECD".
Mr Collins also highlighted the measures which will benefit younger farmers. "Noting the value of the agricultural sector to the general economy in supporting 169,000 jobs and 12pc of the value of exports, the minister announced the extension of the current stock relief provisions and stamp duty exemption for young trained farmers to the end of 2018," he said. "The forestry sector in particular will benefit from the minister's announcement that profits derived from the occupation of woodlands will no longer be subject to the high earners' restriction."