€25,000 tax credits in new Farm Partnership Scheme to encourage earlier transfer of farms
The new Scheme is designed to promote the earlier transfer of farms within families
A new Farm Partnership Scheme has been announced by the Minister for Agriculture, Food and the Marine, which will allow participants tax credits of up to €25,000.
The Minister for Agriculture Michael Creed said the ‘Succession Farm Partnership Scheme’ has been approved, and administrative arrangements are being finalised for its commencement early in 2017.
“This Scheme will promote the earlier inter-generational transfer of family farms, in line with Programme for Government commitments and the Food Wise strategy. It will encourage and support important conversations within farm families about succession planning."
The Scheme was announced in Budget 2016 but its commencement was subject to EU State Aid approval, which has now been received. The Scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure.
“I will continue to work with my colleague the Minister for Finance, who was instrumental in introducing this measure, to ensure that we build on the success of the ‘Agri-taxation Review’ and to fulfil the commitments in the ‘Programme for a Partnership Government’ to ensure strategic change in taxation system to support farm incomes and land mobility. This scheme will help to ensure that farming is strategically positioned for future sustainable growth and development."
He said that a Working Group of officials from his Department, Revenue and Teagasc is finalising arrangements with a view to the scheme being available early in 2017.
Under the Scheme, a tax credit of up to a maximum of €5,000 per annum is available for five years, which can be allocated to the partnership.