IFA President Eddie Downey said the decision to exempt farmers from the Capital Tax on the forced sale of entitlements was a practical approach to an unintended set of circumstances.
It arose as a result of the CAP Reform, which left farmers with no choice and forced them to sell their entitlements against their will. Otherwise, they would lose them. The Minister for Finance Michael Noonan recognised how unfair it would be to impose a Capital Tax on a forced sale.
Eddie Downey said, “IFA identified the taxation problem for the farmers who were forced to dispose of their Single Farm Payment entitlements in 2014, due to having leased out all of their land and entitlements in 2013”.
“I made it clear to the Minister for Agriculture, Simon Coveney, and the Minister for Finance Michael Noonan that these farmers were facing an excessively unfair tax bill due to the new Direct Payments regulation and that an exemption had to be provided”.