Farmer’s Flat Rate Compensation
The flat-rate VAT scheme for unregistered farmers will be adjusted from the current 5.1 % to 4.5 % on 1 January 2026, on the basis of macro-economic data received from the CSO and the Revenue Commissioners for the period 2023-2025.
Accelerated Capital Allowances for Slurry Storage
The Finance Bill provides for the extension of Accelerated Capital Allowance for Slurry Storage for four more years to 31 December 2029.
Extension of the Young Trained Farmer (Stamp Duty) Relief
Section 81AA of the Stamp Duties Consolidation Act 1999 currently provides for a relief from Stamp Duty in respect of a conveyance or transfer of land to a young trained farmer executed on or before 31 December 2025. This section provides for a four-year extension of the relief so that it will apply to instruments executed on or before 31 December 2029.
The extension of the relief is subject to a commencement order. This is to ensure that the State aid compliance of the extension can be confirmed with the European Commission before it comes into effect.
Extension and Amendment of the (Stamp Duty) Farm Consolidation Relief
Farm consolidation (Stamp Duty) relief provides for a relief from Stamp Duty where, within a 24-month period, land holdings are consolidated by way of linked disposals of qualifying land and acquisitions of qualifying land.
The relief currently applies to instruments executed on or before 31 December 2025. This section provides for a four-year extension of the relief so that it will apply to instruments executed on or before 31 December 2029.
The relief is currently available in respect of agricultural land which, as defined in the section, includes commercial woodland. It is intended to extend the relief to include non-commercial woodland.
Both the extension and amendment of the relief will be subject to a commencement order. This is to ensure that the State aid compliance of both elements of this section can be confirmed with the European Commission before they come into effect.
Extension and Amendment of Farm Restructuring Capital Gain Tax (CGT) Relief
Farm Restructuring CGT relief is available when agricultural or farmland is sold, purchased or otherwise exchanged for the purpose of reducing the distance between holdings, and therefore making operations more efficient. This section provides for a four-year extension of the relief to 31 December 2029.
In addition, the relief is being extended to land used as commercial woodland, as well as non-commercial woodland which is used for conservation purposes. The extension of the duration of the relief, as well as the extension of the scope of the relief to include commercial and non-commercial woodland, are both subject to commencement to ensure State Aid compliance.