A total of 1,590 farmers availed of €70m worth of agricultural relief for gift or inheritance of agricultural property in 2013, according to new data.
The figures were made known following a parliamentary question by Éamon Ó Cuív to Finance Minister Michael Noonan.
The Department of Finance is currently putting the finishing touches to the budget, which will be announced next month. One of the main aspects of the budget will be the results of a review of the agri-taxation schemes.
Agricultural relief operates by reducing the market value of ‘‘agricultural property’’ by 90%. This allows the asset to be transferred at a cost substantially below the actual market value of the asset.
It was Labour TD Ruairi Quinn who, as Finance Minister in the mid-1990s, increased the agricultural relief from 50% of the value to 90%.
Ironic
The Commission on Taxation in 2010 recommended lowering the rate to 75% but successive budgets have left it untouched despite pressure, ironically, from Labour in recent times.
The figure of 1,590 is surprising, with many having expected it to have been higher.
The numbers availing of agricultural relief is a real indication of farms being transferred. It had been anticipated that the figure would be higher. Macra na Feirme, the IFA and others have urged the Government to leave agricultural relief untouched in next month’s budget.
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