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