Main Taxation Changes Affecting Farmers in Budget 2017

Take a look at some of the main taxation changes in Budget 2017 and how they will affect you and your farm.

Get information on farm scheme funding, low-cost loans and other expenditure measures here 

Download a Budget 2017 Summary Report

Universal Social Charge

Lowest Universal Social Charge rates will decrease by 0.5% to the rates below:

€0 – €12,012 @ 0.5%
€12,013 – €18,772 @ 2.5%
€18,773 – €70,044 @ 5%
€70,045 – €100,000 @8%

PAYE income in excess of €100,000 @8%
Self employed income in excess of €100,000 @ 11%
Medical card holders and individuals aged 70 and over whose income does not exceed €60,000 will ay a maximum rate of 2.5%

Earned Income Tax Credit

Earned Income Tax Credit to increase from €550 to €940

Income averaging step out

Farmers will be allowed to ‘opt-out’ of income averaging in a single year of unexpectedly poor income and rather than pay the average tax due that year, pay tax only on that year’s income. This measure may be availed of for 2016.

CGT Farm Restructuring Relief

Farm restructuring relief to be extended to end of 2019 with no changes to terms

Farmers’ VAT Flat Rate Addition

Farmers Flat Rate addition to be increased from 5.2% to 5.4% with effect from January 1st 2017.

The flat rate compensates unregistered farmers for VAT incurred on their farming inputs.

Accelerated capital allowances for energy efficient equipment

Scheme of accelerated capital allowances for energy efficient equipment to be made available to sole traders and non-corporates.

Home Carer Tax Credit

Home Carer Tax Credit increased from €1,000 to €1,100

Excise Duties

50c increase on packet of 20 cigarettes with effect from midnight tonight

Carbon Tax

Fuel inputs used to create high efficient electricity in combined heat and power are being fully exempted from carbon tax

CGT relief for raised bogs

Capital Gains Tax relief for sale of raised bogs to be introduced

Capital Acquisitions Tax

Changes to Capital Acquisitions Tax thresholds as follows:

Group A –  raised from €280,000 to €310,000
Group B – raised €30,150 to €32,500
Group C – raised from €15,075 to €16,250


Reduced rate of DIRT – to be decreased by 2% each year for the next 4 years until it reaches 33%

CGT Entrepreneur Relief 

The rate of CGT on the sale of business is reduced from 20% to 10% for disposals of value up to €1m on qualifying chargeable gains

Carbon Tax

Relief from Carbon Tax is provided for solid fuels that include a biomass element and for fuel inputs to combined heat and power plants

Help to Buy

A new income tax rebate for first time buyers of new houses is to be introduced, providing a maximum rebate of €20,000

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