Postponement of Changes to Agricultural Relief the Right Decision

Taoiseach Simon Harris made the announcement that changes to Agricultural Relief announced in the Budget would be postponed, while speaking at IFA’s Farming and Food Conference – A Sector Worth Backing” in Co Kildare yesterday. 

IFA Farm Business Chair Bill O’Keeffe said that while IFA was keen to ensure that agricultural relief was targeted towards genuine farmers, the decision to take more care over the detail was the correct one.

“IFA have engaged with the Department of Finance since the Budget was announce on 1st October and highlighted the unintended consequences that these changes in requirement to qualify for Agricultural Relief would cause many genuine farmers,” Bill O’Keeffe said.

“IFA’s position is that Agricultural Relief must be retained for genuine farmers, as it a vital tax relief that allows for the transfer of farms from one generation to the next,” he said. 

IFA have convened the concerns of many farmers and their financial advisers, who have been extremely concerned that many genuine farmers would not meet the proposed 6-year donor active farmer test announced in this year’s Budget.

“It is good that Government have listened to the concerns raised by IFA and that the necessary time will now be allowed to ensure that any changes to Agricultural Relief will not affect genuine farm transfers in the future,” Bill O’Keeffe said.

However, it is important that the issue is not left on the back burner.

“There must be changes to ensure the relief is targeted to genuine farmers and not open to non-farmer investors. Engagement must continue to find a clear wording that achieves this,” he concluded.