Dáil Éireann Debate, Friday - 7 September 2018
109. Deputy Michael Healy-Rae asked the Minister for Finance his plans to address income volatility among farmers and extend income averaging, greater flexibility on step out and provision of a deposit scheme; and if he will make a statement on the matter. [35760/18]
View answer110. Deputy Michael Healy-Rae asked the Minister for Finance his plans to maintain a number of taxation measures that encourage farm transfer; and if he will make a statement on the matter. [35761/18]
View answerI propose to take Questions Nos. 109 and 110 together.
Decisions on taxation matters including decisions (if any) in relation to farm transfer or income stabilisation measures are made in the context of the annual Budget process, and the Deputy will understand that I cannot give any indications of my plans for Budget 2019 at this time.
As the Deputy may also be aware, the 2014 Agri-tax Review was commissioned to examine agri-taxation measures and to make recommendations to ensure resources are directed towards activities of maximum benefit to the sector. This was a joint initiative between the Department of Finance and the Department of Agriculture, Food and the Marine. The review brought forward 25 recommendations. These recommendations are grouped into 6 broad categories that reflect government priorities: increase the mobility and the productive use of land, assist succession, complement wider agriculture policies and schemes, alternative farming models such as farm partnerships, responses to increasing income volatility, and general recommendations. In particular, the review recommended the following measures to support and promote inter-generational transfer of farms:
- Retain Agricultural Relief from Capital Acquisitions Tax.
- Target Agricultural Relief from Capital Acquisitions Tax to qualified or full-time farmers or to land owners who lease land out on a long-term basis
- Retain Retirement Relief from Capital Gains Tax at current levels. For transfers under Retirement Relief, extend the eligible letting period of a qualifying asset to 25 years.
- For transfers other than to a child under Retirement Relief, as a once-off measure until the end of 2016, allow conacre lettings as eligible.
- Extend Stamp Duty Consanguinity Relief on Non-Residential Transfers to the end of 2017.
- Retain current stamp duty exemptions on transfers of land.
In 2017, the Minister Agriculture, Food and the Marine and I committed to establish an inter-departmental working group to review and assess the progress made on the implementation of tax measure recommendations contained in the Agri-taxation Review 2014 and to take stock of relevant changes in the environment in which the agri-sector operates. Work on this study is underway and its terms of reference are as follows:
1. A summary of the context, background and process of the Agri-tax Review.
2. An update of the context since the completion of the Agri-tax Review, to include: Brexit, Climate change 2020, the abolition of milk quotas.
3. A summary of outcome of Agri-taxation Review & implementation in Budgets 2015, 2016 & 2017, including a summary table of the recommendations and their implementation/current status. In particular, regard should be had to:
1. Analysing income stabilisation and the proposed farm deposit scheme, including a public consultation process and resultant submissions from stakeholders, and
2. the recommendation in the Agri-tax Review on data collection and management in order to comply with state-aid requirements.
3. The mapping of direct and tax expenditure supports available to the agricultural sector.
4. Any other matters arising in the course of the review.
I expect the study to be completed shortly.
