Suspend Agricultural Relief Changes Until Commission on Generational Renewal Reports.  –  ICMSA.

The President of ICMSA, Mr. Denis Drennan has called on the Minister for Finance to suspend the proposed changes to Agricultural Relief as set out in the Finance Bill in light of the serious implications for many ordinary family farms and in light of the establishment of the Commission on Generational Renewal which is due to report by the end of quarter 2 in 2025.

The announcement in Budget 2025 has raised very serious concerns for farm families in terms of transferring the family farm to the next generation in a tax efficient manner allowing for generational renewal and the Finance Bill has confirmed the extremely complex nature of the proposal that let us be very clear, will undermine generational renewal, will expose some farm families to tax bills that will mean the farm will probably have to be sold and will do absolutely nothing to address the impact of outside investors driving up land prices to unsustainable levels.   The taxation system should be designed to ensure that a farm can transfer to the next generation in a tax efficient manner allowing the next generation to invest in their future in farming without facing a crippling tax bill.   This was possible for most before the Budget 2025 announcement but what we have now is a complex set of rules to comply, some people will no longer qualify for the relief and question marks remain for example for people farming in partnerships and companies.  

The Minister for Agriculture, Food & Marine announced the membership of the Commission on Generational Renewal this week and he stated that “I am a strong supporter of assisting the next generation take over the farm when the time is right to do so.”   ICMSA, Mr. Drennan said,  fully agrees with this sentiment but what has been proposed in the Finance Bill will have the opposite effect, is a backward step and given the level of taxation expertise on the Commission and given that it will likely make proposals regarding the transfer of farmland in its report, it is only logical, Mr. Drennan said, that the Government suspends the proposed changes to Agricultural Relief, allow the experts it has appointed to consider the matter and then bring forward changes in Budget 2026 if required.

From a generational renewal perspective, there is nothing positive in the Finance Bill proposals, it is adding unnecessary complexity and anxiety for farm families and Mr. Drennan concluded by urging the Government to pause its proposals and let the Commission do its work.

ENDS      24 October 2024

Denis Drennan is at (086) 8389401.

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ICMSA Head Office: (061) 314677