What the Budget means for farmers in County Wexford

Many people involved in the farming sector in Wexford will be encouraged by measures that have been taken by Minister for Finance Michael Noonan and Minister Simon Coveney.

Yesterday’s Budget will allow the agri-food sector to continue  its progress and the positive impact it has had on economic growth and will ensure a strong future for the farming community in County Wexford.

Minister Noonan put measures in place to stimulate the agri-food sector and other high performing sectors to help them continue to grow.

1.  Reducing the stamp duty rate on agricultural land from 6% to 2%. A half rate (1%) will be applicable to transfers to close relatives until the end of 2014.

2.  A new stock relief incentive to encourage farm partnerships. An enhanced 50% stock relief will be available for all registered farm partnerships, and a 100% stock relief will be available for certain young trained farmers forming such partnerships. Subject to EU State Aid approval, this new incentive will be available until December 2015.

3.      Restructuring of the retirement relief on Capital Gains Tax to incentivise the earlier transfer of farm assets to the next generation, and to encourage the sale of land by those farmers with no successors.

An upper limit of €3m will be introduced on family transfers where the individual transferring is aged over 66, compared to an unlimited amount currently. On non-family transfers, the current upper limit of €750,000 will be reduced to €500,000.  These changes will apply from 2014 onwards, thereby allowing time for older farmers to plan for transfer. These changes will aid land mobility and improve the age profile of Irish farmers.

4.      The VAT rate applied to open farms will be 9% rather than the new standard rate of 23%.  This will be of significant benefit to such farms. I have been dealing with a number of farms across the county on this issue.

5.     A Capital Gains Tax incentive for property purchased before the end of 2013 should also stimulate the land market. A property bought during this period and held for at least seven years will be relieved from Capital Gains Tax.

6.     The exemption rate for the Universal Social Charge has been raised from €4,004 to €10,036. This will be of particular benefit to low-paid seasonal workers in the farming sector.

7.     Consistent with the commitment in the Programme for Government on carbon tax, farmers will be allowed a double income tax deduction in respect of the increased costs arising from the change in carbon tax (the carbon tax is to increase from €15 per tonne to €20 per tonne).

8.     An amendment to the VAT refund order for farm construction will allow farmers to claim a refund on wind turbines purchased from 1st January 2012.

 

The exemption rate for the Universal Social Charge which has been raised from €4,004 to €10,036 which are aimed at assisting lower paid workers and those in part-time employment will be of particular benefit to low-paid seasonal workers in the farming sector in County Wexford.

There will also be a Foreign Earnings Deduction to support our export drive targeted at BRICS (Brazil, Russia, India, China and South Africa) countries will incentivise farmers to expand, helping them to meet new challenges both at home and abroad.

If anyone has any queries in relation to the Agricultural Sector and how it will be affected by the Budget, please contact my office in Enniscorthy (053) 9243558 or send me an email paul.kehoe@taoiseach.gov.ie

 

Minister Paul Kehoe TD

Government Chief Whip & Minister of State

 

 

 

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