Farm organisations welcome tax relief for CAP changes
FARM organisations have welcomed Finance Minister Michael Noonan's announcement of a Capital Gains Tax (CGT) exemption for farmers who are being forced to sell off their Single Farm Payment (SFP) entitlements because of changes to the Common Agricultural Policy (CAP).
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 but who must sell their SFP entitlements by a May 15 deadline or lose their entire SFP entitlements.
During the past year, these payment entitlements have been selling for around 2.3 times their annual value, which would work out at €19,800 on the average farm.
With capital gains tax levied at 33pc, the average value of this exemption could be between €6,000 and €7,000, although there will be significant variation depending on farm size.