Denis Naughten
Question:517 Mr. Naughten asked the Minister for Agriculture and Food the tax incentives which are in place to assist on-farm investment; and if she will make a statement on the matter. [25860/06]
View answerTuesday, 4 July 2006
Questions (507)
Written answers
The Government has a series of taxation measures in place to encourage all forms of on-farm investment.
(1) Young trained farmers are eligible for 100% stamp duty relief on transfers of agricultural land and buildings to them;
(2) No stamp duty relief is payable where there is no difference in the marketable value of land being exchanged between two farmers for the purpose of consolidating their farm holdings. This stamp duty relief scheme will operate for a two year period from 1 July 2005 to 30 June 2007.
(3) 100% stock relief is available for young trained farmers for up to four years with the general rate of 25% applicable to farmers over 35 years of age.
(4) The write off period for capital expenditure on necessary pollution control facilities has been reduced from 7 years to 3 years in an effort to assist farmers comply with the Nitrates Directive. The capital allowance will be provided at a rate of 33.3% per annum over a three-year period with the option to avail of a more flexible writing off arrangement in respect of the lesser of €31,750 or 50% of qualifying expenditure in any one year. Budget 2006 increased the maximum floating allowance to €50,000 for qualifying expenditure.
(5) Budget 2006 introduced favourable adjustments to the income tax exemption for land leased out on a long-term basis by farmers over 40 years of age. For leases of between 5-7 years the income tax exemption has been increased from €7,500 to €12,000 while for leases of longer than 7 years the income tax exemption has been increased from €10,000 to €15,000.
The agricultural community also enjoys favourable treatment with regard to capital acquisitions tax and capital gains tax.