Update: Farming Families and Budget 2015 – Agriculture, Food and the Marine 13th November, 2014

Parliamentary Question No.   90
 
 
 
 
To ask the Minister for Agriculture, Food and the Marine if his attention has been drawn to the concern of members of the farming community who are concerned that the incentive to hand over land to younger farmers provided for in budget 2015 discriminates family members in favour of non-family members; and if he will make a statement on the matter.  

 
For WRITTEN answer on Thursday, 13th November, 2014.  
 
Ref No: 43641/14  
 
 

The Minister for Agriculture, Food       and the Marine   : (Simon Coveney)  

Taxation policy is primarily a matter for the Minister for Finance. However I have on-going contact with Minister Noonan to ensure that tax policy reflects the Government’s commitment to agriculture. In this regard I am pleased that the Minister and I could facilitate the Agri-taxation Review, which was published as part Budget 2015. It gave us a unique opportunity to examine a critical element of Government support to the agriculture sector in the context of the strategy of expansion and increasing exports under Food Harvest 2020.
 
The Review provides a strong evidence base for continued assistance to the primary sector through taxation measures and it is a clear strategy with specific policy objectives for the future. The Government’s commitment to agriculture is evidenced by the immediate implementation of the majority of the Report’s recommendations in Budget 2015, including 12 new measures, which form part of a strategic policy response to the opportunities and challenges ahead.  
 
One of the taxation policy objectives identified by the Review is to assist succession. The age profile of Irish farmers is increasing and it is recognised that there are many social and economic reasons why succession management is a challenge for farmers. Assisting succession and the transfer of farms has been a central part of the Government’s agri-taxation policy and Budget 2015 included a number of measures to maintain and strengthen that support, specifically:  

·     The retention and targeting of Agricultural Relief from Capital Acquisitions Tax to active farmers or to those who lease out land long-term.  
·     The retention and enhancement of Retirement Relief from Capital Gains Tax, including two new measures:  
o     The extension of the eligible letting period of a qualifying asset to 25 years.  
o     For transfers other than to a child under Retirement Relief, as a once-off measure until the end of 2016, the inclusion of conacre lettings as eligible.

·     The retention of the current stamp duty exemptions on transfers of land, including the extension of Stamp Duty Consanguinity Relief, i.e. relief to related persons, on non-residential transfers to the end of 2017.  

I am confident that the package of measures introduced in Budget 2015, the most substantial package of this kind ever introduced in a single budget, will lead to a more efficient and productive sector.
 
These and other taxation measures to assist succession do not discriminate against family members.