Relevant Tax, Pension and Support Schemes Information

Older Farming Couple

  • Young trained farmers qualify for 100% Stock Relief, this can also apply within a partnership or share farming arrangement.
  • Young trained farmers qualify for 0% Stamp Duty on land acquired through sale or gift.
  • The qualifying age for the state pension is 66 and will move to 68.
  • For a spouse to qualify for the contributory state pension in their own right they must have paid PRSI contributions.
  • Everyone aged 70 or over is entitled to a Medical or GP Visit Card. It is a Medical Card where individual gross weekly income is €600 or less (€1,200 for a couple).
  • CAT applies to gifts and inheritances and is paid by the receiver. If Agricultural or Business Relief applies the market value of an agricultural or business property may be reduced by 90%. In addition tax free exemptions apply depending upon relationship between receiver and giver.
  • CGT applies when a person disposes property (land, buildings, or company shares) and is paid by the disposer. Retirement Relief applies if the disposer is a farmer and aged over 55. If the disposer is aged 55 to 66 no upper value limit applies, €3m is the upper limit when the disposer is aged over 66 years. This relief should mean no CGT on transfers within the family and up to €750,000 in sales proceeds without CGT.
  • CGT relief applies when the proceeds from a land sale are reinvested for the purpose of farm consolidation, this relief also applies to land swops. The initial contract must be entered into before 31 December 2015.
  • No CGT applies on the disposal of your principal private residence.
  • The sale of SFP entitlement is subject to CGT. Retirement relief applies if it is transferred with the relating land.
  • Land owners are exempt from income tax on lease income on medium and long term land leased to individuals who are not connected to them as defined by Revenue, lease period 15 years or more up to €40,000, 10 years or more up to €30,000, 7 to 10 years up to €22,500, 5 to 7 years up to €18,000 exempt income per year. Joint owners can qualify for double exemption.
  • Land owners who enter long term leases can still qualify for CGT Retirement Relief (under the 15 plus 10 year rule and as advised in Budget 2014).
  • Budget 2014 promised a review of farmer taxes, this review is expected to be positive towards collaborative arrangements.
  • Low income farmers may qualify for Farm Assist.
  • The Installation Aid Scheme for young farmers is not presently operating.
  • The EU Early Retirement Scheme is not presently operating.
  • New entrants to farming may qualify for special SFP supports and milk quota.