Case Study: 'Tax reliefs will help keep young farmers here'
Published 27/10/2015 | 02:30
The increase in the threshold for tax on inheritance will be greatly beneficial to young farmers as it will help to keep younger people in the industry, according to one farmer.
Patrick McCarthy (32) is a dairy farmer based in Ballydehob in west Cork. He took over his family's farm in 2005 when his father retired.
"It's a dairy farm, I am milking 46 cows a day so it is average size," he said.
"I was leasing for the last couple of years down in the home farm. We are in the process of transferring now."
Mr McCarthy, who sits on Macra na Feirme's agricultural affairs committee, said the 24pc increase in the Group A Capital Acquisition Tax personal threshold from €225,000 up to €280,000 "reflects the increase in asset value so it does benefit young farmers".
"A lot of tax incentives announced in the Budget are definitely welcomed by young farmers. What we wanted were more young farmers to stay in the country.
"It will value the economy going forward and most importantly allow young people to stay farming," he said.
"They called out that the 90pc agricultural relief for farm transfers would be maintained and it was, which is great. That will be a great benefit to me as a young farmer that's transferring at the moment. The 100pc young trained farmers' stamp duty will benefit me as well."
He said the extension of stamp duty for young farmers on the transfer of agricultural property is a "big thing".
Mr McCarthy will also benefit from the budgetary sweetener for the self-employed, which saw the introduction of a tax credit of €550.