Macra calls for annual investment allowance

In an attempt to aid young farmers willing to expand, Macra na Feirme is calling for a restructuring of the framework for writing off assets. Currently the rate is 12.5% over eight years for machinery and 15% over seven years for buildings.

In its pre-budget submission, the young farmer organisation argues that the time frame for writing off capital assets hinders people who are paying both high loan repayments and high tax bills. On those grounds, it proposes that the Irish Government put in place an annual investment allowance, similar to that used in the UK, where a portion of a year’s capital expenditure can be written off in the first year.

Macra’s taxation priorities for the 2017 budget include extending the maximum age for stamp duty relief on the purchase of land to 40 and giving tax relief on the leasing of farmland to parents, children and between siblings for a one-term lease no longer than seven years, available up to the age of 35. Macra also calls for the capital acquisitions tax (CAT) thresholds to be increased by 25%. This is to reflect increasing asset values and to regain some of the cuts made in budgets during the financial crisis. At present the thresholds are half their levels in 2009.

Family transfer

The submission urges the Government to prioritise the Family Transfer Partnership to be approved under State aids and to increase the amount eligible for stock relief to €150,000.

To address the gender imbalance in agriculture, Macra seeks maternity cover for female farmers and aid to cover the cost of a replacement farmer for 14 days’ holiday leave in order to reduce the number of farm accidents.

Macra also proposes that a fund of €2m be made available to young trained farmers to purchase grass-measuring equipment and allow young trained farmers to reclaim VAT on lime bought for improving soil quality.