Written answers
Thursday, 29 May 2025
Department of Finance
Tax Reliefs
Peter Cleere (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context
57. To ask the Minister for Finance if he is reviewing any of the tax reliefs or allowances for farmers; and if he will make a statement on the matter. [27775/25]
Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context
As a number of tax reliefs are due to 'sunset' at the end of 2025, the Department is currently reviewing the following schemes in advance of Budget 2026:
Accelerated Capital Allowance (Income Tax) for Slurry Storage
In Budget 2023, a scheme was announced to allow for the Accelerated Capital Allowance for Slurry Storage for the construction of slurry storage facilities in farms to incentive the sector in further adopting environmentally positive farming practices.
The scheme allows for the capital expenditure on slurry storage buildings and associated equipment to be written off at a rate of 50% per annum over a period of 2 years, as opposed to the standard period of 7 years in the case of farm buildings, and 8 years in the case of plant and machinery.
The scheme is in place 3 years for expenditure occurred from 1 January 2023 to 21 December 2025.
Young Trained Farmer (Stamp Duty) Relief
The Young Trained Farmer (Stamp Duty) relief (the YTF relief), which is legislated for in Section 81AA of the Stamp Duties Consolidation Act 1999 (SDCA 1999), provides a full exemption from Stamp Duty (which would normally be charged at a rate of 7.5%) on the transfer of farmland, subject to certain conditions being met.
The core purpose of the relief is to promote lifetime transfers of land and encourage more young people to pursue farming. Both the Government and the EU strongly support these goals.
The sunset clause currently applicable to the YTF relief is due to be reached on 31 December 2025.
Farm Consolidation (Stamp Duty) Relief
The purpose of farm consolidation relief is to encourage the consolidation of farm holdings, to reduce farm fragmentation and so improve the operation and viability of farms.
The relief is available where farm holdings are consolidated by way of linked sales and purchases of land and where land is transferred as a gift or by way of exchange. Stamp duty at a reduced rate of 1% (usual rate is 7.5%) is applied to the excess of the value of the land acquired over the value of the land disposed of, where the acquisition and disposal take place within a 24-month period of each other.
As a condition of the relief, Teagasc, as the competent body, is required to certify that purchases, sales and transfers of land are being carried out for genuine consolidation purposes, by issuing a ‘Farm Restructuring Certificate’. The relief also constitutes an EU State aid and must therefore comply with State aid rules.
The scheme has been renewed for three-year periods on several occasions and is next due to sunset on 31 December 2025.
Farm Restructuring (CGT) Relief
Section 604B of the Taxes Consolidation Act 1997 provides for a “Relief for farm restructuring” from Capital Gains Tax (“CGT”). The purpose of farm restructuring relief is to encourage the consolidation of farm holdings, to reduce farm fragmentation and so improve the operation and viability of farms.
The relief applies to a sale, purchase or exchange of agricultural land, where Teagasc has certified that a sale and purchase or an exchange of agricultural land was made for farm restructuring purposes. As with its Stamp Duty equivalent, the initial sale or purchase, or the exchange, must occur in the relevant period (i.e. before the relief sunsets) and the subsequent sale or purchase must occur within 24 months of that sale or purchase.
The scheme has been renewed for three-year periods on a number of occasions and is next due to sunset on 31 December 2025.
Revised CAT Agricultural Relief
Tax legislation provides for relief from Capital Acquisitions Tax ('CAT') for gifts and inheritances of “agricultural property” where conditions are met. Where the relief applies, it operates by reducing for CAT purposes the market value of qualifying assets by 90%.
To qualify for the relief, a few conditions must be met by the beneficiary. One condition is the active farmer test, which requires the beneficiary to farm the agricultural property or lease it to an individual who farms the agricultural property for at least 6 years following the gift or inheritance. Finance Act 2024 extended the active farmer test to the disponer by way of a commencement order. Department officials are in the process of consulting with stakeholders with a view to ensuring there are no unintended consequences in commencing this section.
Gerald Nash (Louth, Labour)
Link to this: Individually | In context
58. To ask the Minister for Finance when he will introduce a new scheme for disabled drivers; and if he will make a statement on the matter. [28127/25]
Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context
The Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
However, this is very much a matter for Government as my Department has oversight of the DDS only and does not have responsibility for disability policy.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress the National Disability Inclusion Strategy proposals for a needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS and generated a report that was submitted to the Department of the Taoiseach. In considering this report, it has been proposed that a new grant-based scheme be developed and led by the Department of Transport.
The Department of Transport is beginning the development of this new scheme. The existing DDS remains with the Department of Finance and will continue to be reviewed in the context of new scheme developments by the Department of Transport
No comments