How to avail of a €25,000 tax break and give young farmers a helping hand
Department reveals details of new tax breaks for transfer of land to young farmers
The Department of Agriculture has opened its new Succession Farm Partnership initiative to encourage increased transfer of farmland to younger farmers.
Succession farm partnerships are a new income tax incentive to encourage Farmers to transfer the farm business to their identified farming Successor.
This incentive has received EU state aid approval and can be availed of for the 2017 and subsequent income tax years.
The incentive is in the form of an annual income tax credit of €5,000 for up to five years.
Under the initiative the farmland must be transferred to the identified successor within 3 to 10 years of registering with the Department of Agriculture to claim the tax credit and a minimum of 80pc of the farm assets outlined in the agreement must be transferred.
The credit is split annually based on the profit sharing ratio of the partnership between the Farmer and the Successor.
It applies only to partnerships that are registered on the register of succession farm partnerships maintained by the Department of Agriculture, Food and the Marine.