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Budget 2014 Impact on Farmers

22 Oct

The budget was awaited with some trepidation but it appears to have largely maintained the status quo where taxation is concerned vis a vis farmers.


The main points to note are

Capital Gains Tax

This tax is triggered on the disposal of land either through sale or gift. The rate remains unchanged at 33%.

The CGT retirement relief for farmers has been extended to disposals of leased land in circumstances where among other conditions the land is leased over the long term (a minimum of 5 years) and the subsequent disposal is to a person other than a child of the individual disposing of the farmland.

The purpose of introducing this measure is to encourage older farmers who have no children willing to take up farming to lease out their land over a long term to younger farmers and still be able to avail of the CGT retirement relief.



This tax is triggered on inheritance i.e. when land is transferred during life or after death.

No changes announced so that Agricultural Relief, whereby if certain conditions are satisfied, the value of the land is reduced by 90%, remains unchanged as do the rates and tax thresholds.

The standard rate of 33% has been retained on all gifts and inheritances taken on or after 6.12.2012 Tax thresholds also remain the same

Group A son or daughter €225,000.00

Group B niece/nephew/brother sister €30,150.00

Group C relationship other than A or B is €15,075


If you received a gift / inheritance on or before 31st August 2013 the pay and file deadline is October 31st.  CGT and CAT are self-assessment taxes so the onus is on the individual to file a return and file on time otherwise penalties are triggered.


Stamp Duty is triggered when property is transferred during life

Rates of stamp duty vary between 1 % and 2% depending on the value of the property.

The eligibility requirements for the stamp duty relief for Young Trained farmers for the purchase of agricultural land is being extended by adding three more qualifying courses to be announced when the finance bill is published.




The farmer’s flat-rate addition will be increased from 4.8% to 5% with effect from 1 January 2014. The flat-rate scheme compensates unregistered farmers for VAT incurred on their farming inputs.


The VAT rate on the disposal of livestock remains at 4.8%



FARMERS are set to benefit from a new grant scheme for beef calves in the Budget.It will replace the axed suckler cow welfare scheme, which had been worth €25m per year. The new scheme will provide grants for farmers who produce quality beef calves.But it is understood that the scheme will exclude calves from Friesian cows, which are used in the dairy sector rather than in the beef sector.