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Agri Tax Review – Budget 2015

By Administrator on November 19, 2014 in Community, Company Law, Taxation
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AgriTax

Agri-Tax Review, Budget 2015

VAT

Flat rate increase from 5% to 5.2% from 1/1/2015

Stamp Duty

Agri leases to ACTIVE FARMERS are exempt. From 1/1/2015 Transfers to a related party will only qualify for the reduced rate if the transferee is an ACTIVE FARMER

Income Tax

Income averaging extended from 3 to 5 years. “Assisting Spouses” on the family farm can now make PRSI contributions towards their welfare entitlements as a self employed worker. Leased land income exemption limits have increased to €18k for 5 year leases and increasing to €40K for 15 year leases

Capital Gains Tax

Retirement relief extended to con acre arrangements. From 1/1/2015 windfall tax of 80% is abolished. 7 year CGT holiday will no longer apply to purchases of land and property after 31 Dec 2014

Gift and Inheritance Tax

Currently Agricultural relief which reduces the market value of agricultural property by 90% is based solely on an asset test. Click here for an example case study. From 1/1/2015 you must now also be an ACTIVE FARMER or lease it (6 years or more) to an ACTIVE FARMER to avail of this relief.

Active Farmer

An active farmer is “an individual who spends not less than 50% of their normal working time farming on a commercial basis with a view to making profits”