Wednesday, 10 April 2019

Ceisteanna (51, 52)

Paul Kehoe

Ceist:

51. Deputy Paul Kehoe asked the Minister for Finance the timescale for tax relief available for young farmers (details supplied); and if he will make a statement on the matter. [16775/19]

Amharc ar fhreagra

Paul Kehoe

Ceist:

52. Deputy Paul Kehoe asked the Minister for Finance if a young trained farmer claimed tax relief of €22,500 in 2008, if this amount will be taken into account in relation to the new €70,000 lifetime threshold of tax relief for young farmers; and if he will make a statement on the matter. [16782/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 51 and 52 together.

Commission Regulation (EU) No. 702/2014 of 25 June 2014, commonly known as the Agricultural Block Exemption Regulation (ABER), is the Regulation under which certain categories of State aid can be granted for the agricultural and forestry sectors.

Article 18 of the ABER sets out the specific requirements for the granting of aid for young farmers and the development of small farms.  It stipulates, inter alia, that the amount of aid per young farmer is to be limited to €70,000.  This limit applies to the cumulative aid received under all schemes covered by Article 18 of the ABER.  The relevant schemes are: 

- stock relief under section 667B Taxes Consolidation Act 1997;

- farm succession partnerships under section 667D Taxes Consolidation Act 1997; and

- transfers of land to young trained farmers under section 81AA Stamp Duties Consolidation Act 1999.

The €70,000 limit is per young farmer and I am advised by Revenue that there is no five-year rolling relief available.

The ABER entered into force on 1 July 2014 and has had direct effect in all Member States since that date. Accordingly, any tax relief granted in 2008 does not have any bearing on the €70,000 limit introduced in 2014.