Succession Farm Partnership register launched
The Succession Farm Partnership scheme was announced in Budget 2016. The objective of the scheme is to encourage the transfer of farm assets to the next generation.
It provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure. The tax relief will apply for the 2017 tax year and onwards. Applications will be accepted as from 1st June 2017.
The scheme provides a level of protection for the farm owner by allowing them to retain 20% of the farm assets.
How the scheme works is that the owner and the person expected to take-over the farm enter into a registered farm agreement. They then apply for approval under the succession farm partnership scheme.
The main conditions to be met are as follows:
- The agreement must be for the sale or transfer of at least 80% of the farm assets.
- The sale/transfer of the assets must occur between year 3 and year 10 of the agreement.
- At least one member of the Partnership must have a recognised agricultural qualification, be aged 39 years or younger and be entitled to at least 20% of partnership profits.
Entering into a farm partnership agreement entitles the partners to:
- Preferential stock relief, 50% subject to a maximum of €15K over 3 years.
- Collaborative farming grant of up to €2,500.
- Tax credit of €5K pa over five years; this figure is divided over the partners.
Any claim for Retirement Relief, Agricultural or Business Relief will be subject to normal qualifying conditions.
For more details please visit DAFM.