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Tax Reliefs

Dáil Éireann Debate, Wednesday - 13 October 2021

Wednesday, 13 October 2021

Ceisteanna (108)

Colm Burke

Ceist:

108. Deputy Colm Burke asked the Minister for Finance if consideration will be given to extending stock relief until December 2026; and if he will make a statement on the matter. [49946/21]

Amharc ar fhreagra

Freagraí scríofa

In accordance with my Department's Tax Expenditure Guidlines, generally speaking, tax measures are usually extended for a three-year period at any one time. As the Deputy will be aware, I announced in the Budget yesterday that the various stock relief measures are to be extended in Finance Bill 2021.

Section 666 of the Taxes Consolidation Act (TCA) 1997, which provides that the amount of stock relief is 25% of the amount by which the value of farm trading stock at the end of an accounting period exceeds the value of farm trading stock at the beginning of the accounting period, is to be extended for a further three years.

Section 667B TCA 1997, which provides enhanced stock relief at a rate of 100% for young trained farmers, and section 667C TCA 1997 which provides for stock relief at the rate of 50% for farmers who are partners in registered farm partnerships, are to be extended for a further one year. As referenced in my Budget address yesterday, this shortened period arises because we must await the outcome of CAP and related State Aid negotiations which have a bearing on these two reliefs.

However, as I also noted, I have been advised by the Department of Agriculture that they are confident that reliefs of this nature will continue to be considered an acceptable form of State Aid under the terms of any revised regulation.

I am hopeful, therefore, that it will be possible to provide for a further extension of these reliefs next year in line with the extension to section 666 TCA 1997 being made this year.

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