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Pros and cons of the issue


Reduces taxes on farm profit from as much as 55pc down to 12.5pc.

• This has the potential to save a farmer with a taxable income of €80,000 over €12,000/yr in tax.

• Can almost double the money available to pay down business loans by reducing the tax take on loan repayments from 55pc to 12.5pc.


• Annual accountancy charges often €1,000 higher.

• Landowners not eligible for tax relief on lease income to companies.

• New taxation issues to look out for, such as benefit-in-kind on vehicle owned by the company, termination of PAYE tax credits, and more complicated capital tax allowances.

• If you need extra money from the company above €42,000, you will become victim to a heavier 'double hit' of 12.5pc on company profits along with a further 55pc income taxes when USC and PRSI charges are included.

Darragh McCullough

Indo Farming