The finance bill has been amended to delay the implementation of a tightening of agricultural relief eligibility rules so that cases where some genuine farm families risk no longer being entitled to inheritance reliefs can be accounted for under the new rules.The postponement will allow the Government to consult farming organisations and other stakeholders to ensure these genuine farm families do not face “unintended consequences” of the new relief conditions, an Taoiseach Simon Harris has said.
The finance bill has been amended to delay the implementation of a tightening of agricultural relief eligibility rules so that cases where some genuine farm families risk no longer being entitled to inheritance reliefs can be accounted for under the new rules.
The postponement will allow the Government to consult farming organisations and other stakeholders to ensure these genuine farm families do not face “unintended consequences” of the new relief conditions, an Taoiseach Simon Harris has said.
The changes triggered succession concerns from farmers and agri tax advisers when announced on budget day.
As originally announced, they would have required the individual transferring the farm to have farmed it themselves for six years before the transfer, as well as requiring the individual receiving the farm to farm it actively for six years afterwards.
“I think what people have seen from the Government is that we have listened to farmers and farm organisations in relation to this,” he told the Irish Farmers Journal on Thursday.
'Sensible changes'
“We are endeavouring to make changes that are sensible changes in terms of those who aren’t farmers and those who shouldn’t be able to benefit from reliefs and who should be able to pay their way in that regard.”
An Taoiseach insists that the rationale for tightening agricultural reliefs to ensure they are not used as a wealth management tool by families not engaged in active farming remains valid.
He was speaking at the Irish Farmers' Association (IFA) Farming and Food – A Sector Worth Backing summit in the Curragh.
His comments referenced Irish Farmers Journal post-budget analysis of genuine farm family cases which could run into a large inheritance tax bill transferring farmland to children as an example of those which the consultation aims to account for.
“I think the intent is solid, but rushing its implementation would be foolhardy and that is why we have taken that decision today.
“I am very pleased that today myself and the Minister for Finance have agreed amendments to the finance bill to provide for a commencement order in relation to that change - in other words, that it wouldn’t come in until there has been consultation and engagement with stakeholders.”
Mercosur agenda
The Irish Farmers Journal pushed an Taoiseach on the impact that a new report from the European Commission’s DG SANTE, which found inadequacies in the audit controls used to certify Brazilian beef as free from hormones banned in the EU.
“Instinctively, Ireland is in favour of free trade. I mean Ireland has an agricultural sector that exports around 90% of what it produces,” an Taoiseach responded.
“But consistency in approach is also a very good thing and it is not fair to expect Irish farmers to comply with a system of regulation that we don’t then expect those who wish to export their product into our country to have to comply with as well.
“So, in its current form, that is the position of Government and my party in relation to Mercosur.”
Stay tuned to farmersjournal.ie of more coverage of the summit.
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