Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

72. To ask the Minister for Finance if there is guidance from the Revenue Commissioners or otherwise for the farming sector in relation to section 21 of the Finance Bill 2018; and if he will make a statement on the matter. [49970/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 21 of Finance Bill 2018 includes a range of amendments to Part 23 of the Taxes Consolidation Act 1997 (Farming and Market Gardening). The principal changes were the removal of restrictions relating to criteria enabling individuals to qualify for farm averaging and amendments to the stock relief provisions to ensure conformity with the EU Agricultural Block Exemption Regulation.

In relation to farm averaging, the section amends section 657 by extending the availability of income averaging to farmers who, or whose spouse or civil partner, carries on another non-farming trade or profession or who are directors of companies which carry on a trade or profession. At present such farmers are not entitled to elect for income averaging. The change is intended to assist those farmers dealing with income volatility by maximising the number of farmers who are eligible to opt in to the regime, and should allow for increased uptake of the scheme, with the Irish Farmers’ Association having previously estimated that some 5,000 farmers were unable to enter averaging as a result of the current restriction on those with off-farm trading income.

Section 21 also amends section 667B (stock relief for young trained farmers) and 667D (Succession Farm Partnerships) to ensure conformity of those sections with the applicable rules on State Aid under the Agricultural Block Exemption Regulation. Provision is made for aggregation of reliefs granted to young trained farmers under sections 667B, 667D and section 81AA of the Stamp Duties Consolidation Act 1999 to ensure that the €70,000 limit provided for in the regulation is not exceeded.

Revenue advise me that once the Bill is enacted it will provide guidance on the above changes both in their Notes for Guidance and in their Tax and Duty Manuals.