Minister reveals agri schemes under ‘review' before Budget 2026
The Minister for Finance, Paschal Donohoe has outlined a number of schemes for farmers that the Department of Finance is reviewing in advance of Budget 2026.
The minister was responding to a parliamentary question from Fianna Fáil TD, Peter 'Chap' Cleere.
According to Minister Donohoe, a number of tax reliefs are due to 'sunset' at the end of 2025.
The first scheme under review is the Accelerated Capital Allowance (income tax) for slurry storage.
The scheme was announced in 2023 to allow for the accelerated capital allowance for slurry storage, and for the construction of slurry storage facilities in farms.
'The scheme allows for the capital expenditure on slurry storage buildings and associated equipment to be written off at a rate of 50% per annum over a period of two years, as opposed to the standard period of seven years in the case of farm buildings, and eight years in the case of plant and machinery,' Minister Donohoe explained.
The scheme has been in place for three years for expenditure occurred from January 1, 2023 to December 21, 2025.
Schemes
The second scheme the minister mentioned was the Young Trained Farmer (stamp duty) Relief.
It provides a full exemption on stamp duty, which is normally charged at 7.5% on the transfer of farmland, subject to certain conditions being met.
The relief is available where farm holdings are consolidated by way of linked sales, purchases of land, and where land is transferred as a gift or by way of exchange.
According to the minister, stamp duty at a reduced rate of 1% is applied to the excess of the value of the land acquired over the value of the land disposed of, where the acquisition and disposal take place within a 24-month period of each other.
The scheme has been renewed for three-year periods on several occasions and is next due to 'sunset' on December 31, 2025.
The Farm Consolidation (stamp duty) Relief is also under review.
The purpose of the relief is to encourage the consolidation of farm holdings, to reduce farm fragmentation, and improve the operation and viability of farms.
Minister Donohoe said: 'The relief is available where farm holdings are consolidated by way of linked sales and purchases of land and where land is transferred as a gift or by way of exchange.
As with the Young Trained Farmer Relief, stamp duty at a reduced rate of 1% is applied.
Minister Donohoe also highlighted the situation with the Farm Restructuring (CGT) Relief.
He said: 'The purpose of farm restructuring relief is to encourage the consolidation of farm holdings, to reduce farm fragmentation and so improve the operation and viability of farms.
'The relief applies to a sale, purchase or exchange of agricultural land, where Teagasc has certified that a sale and purchase or an exchange of agricultural land was made for farm restructuring purposes,' Minister Donohoe added.
The scheme has been renewed for three-year periods on several occasions and is next due to 'sunset' on December 31, 2025.
Finally, the minister mentioned the Revised CAT Agricultural Relief.
In this scheme, tax legislation provides relief from Capital Acquisitions Tax (CAT) for gifts and inheritances of agricultural property, where conditions are met.
The minister explained that where the relief applies, it operates by reducing for, CAT purposes, the market value of qualifying assets by 90%.
Minister Donohoe said: 'To qualify for the relief, a few conditions must be met by the beneficiary. One condition is the active farmer test, which requires the beneficiary to farm the agricultural property or lease it to an individual who farms the agricultural property for at least six years following the gift or inheritance.
' (The) Finance Act 2024 extended the active farmer test to the disponer by way of a commencement order.
'Department officials are in the process of consulting with stakeholders with a view to ensuring there are no unintended consequences in commencing this section,' the minister added.
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