Agri Sector

Confirmation of Budget 2019 measures

Income Averaging and Stock Relief

Income averaging allows farmers to pay tax on the averaged profits of their farming trade over a period of 5 years to help farmers deal with income volatility associated with the farming industry. A farmer who had “off farm income” (i.e. other trading income, a 25% director/shareholder of a company carrying on a trade) was restricted from availing of the relief. This restriction has now been removed.

Stock relief has been extended for a further 3 years.

Extension of Young trained farmers Stamp Duty Relief

Section 46 of the Finance bill have extended the Young trained farmers stamp duty relief for a further 3 years. It is subject to a commencement order.

There have been a number of other amendments, which relate to the transfer of farmland, as follows: 

  • There is a lifetime limit of €70,000 on the amount of State Aid that can be granted to a farmer, taking into account stock relief, stamp duty relief and farm partnership credit. 
  • Amendment of the "qualifying conditions" for a person who obtains a relevant qualification after the transfer of the farmland and is seeking a refund of the Stamp duty paid on the transfer. 
  • Technical amendments to the Stamp Duty relief on farm consolidation to bring it in line with the self-assessment system.

Farm Restructuring – Information to Revenue

Where a taxpayer avails of the CGT relief on a farm restructuring, they are now required to provide certain information to the Revenue to allow them calculate the gain that would arise had the relief not been claimed. Where the relief has been claimed during the period 1 July 2016 and 31 December 2018, the information must be provided as part of taxpayer’s 2018 Income Tax return. For tax years 2019 and later years, the information is due to be filed in line with the Income Tax return filing deadline.

Return to Budget 2019 Analysis