Michael Healy-Rae
Question:284. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding an income tax incentive; and if he will make a statement on the matter. [36140/15]
View answerTuesday, 20 October 2015
Questions (284)
Written answers
In last week's Budget, I announced the introduction of a Succession Farm Partnership, subject to EU State Aid approval. A Succession Farm Partnership is a succession planning model that encourages older farmers to form partnerships with young trained farmers and to transfer ownership of the farm, within a specified period, to that young trained farmer. This relief is available to any individuals, including families, who meet the qualifying criteria.
The key terms of a Succession Farm Partnership are:
- Where a Registered Farm Partnership exists, where one participant is a farmer who owns land and the other participant is a young trained farmer, this partnership may become a Succession Farm Partnership.
- In general, there can only be two partners: an anchor farmer and a young trained farmer successor. Where the anchor farmer's land was co-owned, or where the anchor farmer intends to pass the farm jointly to a successor and that successor's spouse or civil partner, then exceptions are made.
- The anchor farmer must agree to transfer the farm to the successor within 3 to 10 years of entering into the partnership.
- For the first five years of the partnership, or up until the successor reaches the age of 40, the partners are entitled to a 'succession tax credit' of €5,000 per annum divided between them. This tax credit can only be used against the profits of the farm. The partners can apportion the tax credit between them based on relevant agreements. If the farm is not transferred as agreed at the outset, then this tax credit is clawed back.