Article by Michael Fitzgerald.

• The transfer of a family farm is a big decision for any farmer
• There are substantial tax costs making transfers commercially impracticable
• There are, however, several tax reliefs which, when availed of, can minimise or eliminate these liabilities
• Many conditions that must be met for both, retirement relief and agricultural relief. Both being affected if solar panels are installed on farmland. The precise application of these rules must be examined closely in each case.
• The rate of stamp duty is currently 7.5% on the market value of the agricultural lands and is generally a liability for the transferee.
• Reliefs known as consanguinity relief and young trained farmer relief, can reduce that rate to 1% and 0% respectively, provided that their many conditions are met.
• There are also income tax reliefs available in respect of certain leases of agricultural land.

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Michael Fitzgerald is an FDC Regional Tax Manager.