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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Finance Act 2014 Changes to Farming Tax Measures

Included in the Revenue’s guide to Finance Act 2014 farming tax measures is guidance on the changes to Agricultural Relief which came into effect on 1 January. Readers may be particularly interested in Revenue’s meaning of “normal working time” and their position on farming through a company for the purpose of this relief.

According to the guidance, for the purpose of Agricultural Relief, Revenue will accept that “normal working time” approximates to 40 hours per week. This will enable farmers with off-farm employment to qualify for the relief provided they spend a minimum of 20 hours working per week, averaged over a year, on the farm.

Revenue’s position on the commercial farming test is that whether a person is farming on a commercial basis and with a view to the realisation of profit can only be determined by reference to the facts in each case.

Clarification on application of the new farmers test and the clawback provisions for Agricultural Relief are set out. The guide, published on the Revenue website, also covers changes to farming tax measures introduced by Finance Act 2014 to the following:

Income Tax:

  • Income Averaging
  • Relief for Certain Income from Leasing of Farm Land
  • Stock Relief

Capital Gains Tax:

  • Farm Restructuring Relief
  • EU Single Farm Payment Entitlements

Stamp Duty:

  • Leasing Farmland
  • Consanguinity Relief

The full guide is available on here.

The changes introduced to farming tax measures are designed to complement recommendations in the Agri-Taxation Review which followed the Government’s public consultation early last year. As we reported at that time, Chartered Accountants Ireland responded to that consultation on behalf of the CCAB-I and subsequently met with officials from the Department of Agriculture and Finance to discuss this submission.

The Institute has also been involved in consultations with Revenue at the TALC Capital forum on the amendments to the CAT Agricultural Relief and stamp duty measures. We will continue to raise members’ concerns with these reliefs and other capital tax measures at this forum.