Deadline for Capital Gains Tax relief is looming
Farmers looking to avail of Capital Gains Tax (CGT) relief on the sale of their entitlements before this Thursday's deadline must sell them to the lessee, unless the terms of the lease allow them to do otherwise.
A statement from the Revenue Commissioners confirmed that farmers would not be able to sell their entitlements to buyers other than their lessees "without regard to the terms of the existing lease."
Last week the Minister for Finance, Michael Noonan, announced the exemption from CGT for farmers who are being forced to sell off their Single Farm Payment (SFP) entitlements due to changes in the CAP reforms.
Estimated to be worth an average of €7,000 to the 6,400 or so farmers affected, the exemption applies to farmers who had been leasing out their land in 2013. If they do not sell all these entitlments by May 15, they face losing them forever.
"Given that there would already be a lease of the entitlements in place between the lessor and the lessee for a particular period, it would appear that the lessor could not now sell the entitlements to someone else without regard to the terms of the existing lease," the Revenue said.
"Subject to any necessary resolution of this issue between the lessor and the current lessee (which are matters for the lessor and lessee to resolve) transfer of those entitlements other than to the current lessee is not excluded from the exemption," the statement concluded.