The Succession Farm Partnership Scheme, announced in Budget 2016, has been approved, and administrative arrangements are being finalised for its commencement in early 2017.
Announcing the development of the scheme, the Minister for Agriculture, Food and Marine, Michael Creed said it would promote the earlier inter-generational transfer of family farms, in line with Programme for Government commitments and the Food Wise strategy.
“It will encourage and support important conversations within farm families about succession planning,” he added.
The Scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure. Succession Farm Partnerships provide a structure for eligible persons to enter into a partnership, and appropriate profit-sharing agreement, with the provision for the transfer of the farm to the younger farmer at the end of a specified period, which must not exceed 10 years.
“I will continue to work with my colleague, the Minister for Finance, who was instrumental in introducing this measure, to ensure that we build on the success of the Agri-taxation Review and to fulfil the commitments in the Programme for a Partnership Government to ensure strategic change in taxation system to support farm incomes and land mobility,” the Minister continued.
“This scheme will help to ensure that farming is strategically positioned for future sustainable growth and development.
“A Working Group of officials from my Department, Revenue and Teagasc is finalising arrangements with a view to the scheme being available early in 2017.”