Inheritance tax relief secured under twenty hour farm work rule.
Sligo News File Online
ICSA general secretary Eddie Punch has welcomed clarification that the 50% on-farm working time requirement to avail of inheritance tax relief as per the Finance Bill can be achieved by working 20 hours a week on the farm.
“Many farmers who are inheriting farms involved in low income sectors such as cattle and sheep have no option but to also work off-farm. In these cases, it would have potentially been impossible to claim that the farm work was taking up another 40 hours on top of a 40-hour (or more) off-farm job. Low income cattle and sheep farmers are the backbone of rural Ireland and must be encouraged to remain in farming,” said Mr. Punch.
“Agricultural relief is vital because it provides a 90% reduction in the value of agricultural assets for the purposes of calculating liability for Capital Acquisitions Tax.
“Where a farm is being inherited, failure to avail of agricultural relief could mean a substantial tax bill running into tens of thousands even on relatively small and medium sized operations, and we welcome the fact that part-time farmers who work 20 hours a week on the farm can now avail of this relief.”