The Succession Farm Partnership Scheme, proposed by IFA and included in Budget 2016, will open in early 2017, Minister for Agriculture Michael Creed has announced.
The Scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure.
The scheme was announced in Budget 2016, having been included in IFA’s pre-Budget Submission, but its commencement was subject to EU State Aid approval, which has now been received.
How will the scheme work?
‘Succession Farm Partnership’ is a structure in which eligible persons enter into a partnership, and appropriate profit-sharing agreement, with the provision for the transfer of the farm to the younger farmer at the end of a specified period (not exceeding ten years).
To support this transfer, a tax credit of up to a maximum of €5,000 per annum for five years, can be allocated to the partnership. The partnership model enables a gradual transfer of control and also facilitates knowledge transfer from one generation to another.