Registered Farm Partnership
If you farm in partnership with another farmer, tax relief may be available against your share of the profits from the partnership. A farm partnership is where two or more farmers come together to combine their farming operations into one business. Each farmer shares the profit that the farm partnership makes, based on an agreed ratio.
In order to qualify for relief, the partnership must qualify as a Registered Farm Partnership in accordance with section 667C of the Taxes Consolidation Act 1997. The Farm Partnership must also be listed on the register maintained by the Department of Agriculture, Food and the Marine. Relief is by way of enhanced stock relief at a rate of 50% for the farmers in the partnership.
Succession Farm Partnership
You may wish to enter into arrangements to plan for the transfer of your farm to a successor. Additional tax relief is available for farm partnerships which qualify as a Succession Farm Partnership. This is a Registered Farm Partnership whereby a farmer agrees to transfer at least 80% of the farm assets to a chosen successor within a specified period.
The Succession Farm Partnership must satisfy the requirements set out in section 667D of the Taxes Consolidation Act 1997. It must also be recorded on the register maintained by the Department of Agriculture, Food and the Marine.
Relief is available by way of an annual tax credit worth up to €5,000 per annum for a five year period.
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