The succession farm partnership scheme was first announced in Budget 2016.
It was subject to EU state approval which was received.
The succession farm partnership scheme provides a succession tax credit of €5,000 per annum. It is an initiative set up to encourage farmers to form partnerships with young trained farmers and to then transfer ownership of the farm to that young trained farmer.
What conditions are attached to the succession farm partnership scheme?
- Must be individuals not incorporated entities
- At least one partner must have been farming for at least two years prior to the set up of the partnership on at least three hectares of farming land.
- Each of the other partners must be under forty years of age, trained farmer and entitled to at least 20% of partnership profits.
- A business plan in respect of the farm partnership must have been submitted to and approved by the Minister.
- The farmer shall agree to sell or transfer at least 80% of the farm assets to one or more successors within 3 to 10 years from the date the application is made to enter the partnership on the register.
Who is entitled to the succession tax credit?
Each partner in the succession farm partnership shall be entitled to a tax credit for the year of assessment in which the registration takes place and each of the four years immediately following that year which is the lesser of :
- €5,000 per year divided between the partners
- The assessable profits
No partner in a succession farm partnership can claim the succession tax credit once a successor has reached the age of 40.
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