IFA President Eddie Downey has welcomed the announcement by the Minister for Finance Michael Noonan to provide a Capital Gains tax exemption for farmers who have to dispose of their SFP entitlements by 15th May 2014 due to changes in the CAP reform.
Eddie Downey said, “IFA identified the taxation problem that was faced by over 6,000 farmers who are being 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, that these farmers were facing a tax bill due to the new Direct Payments regulation and that an exemption had to be provided”.
He continued, “It is critical that this exemption extends to all affected groups. It must include those who are disposing of their entitlements to a 3rd party and those who must transfer their entitlements into their own company”.