Get advice before you transfer anything. Several of these reliefs depend on how the transfer is set up, and the Succession Farm Partnership needs a registered partnership first. The advice grant exists to pay for that first step.
Quick facts
- Succession Farm Partnership
- €5,000 tax credit a year, up to 5 years
- Agricultural Relief
- Taxable value cut by 90%
- Consanguinity Relief
- Stamp duty 1% between relatives
- Young Trained Farmer Relief
- No stamp duty, if under 35
- Retirement Relief
- Capital Gains Tax relief from 55
- Advice grant
- 50% of costs, up to €1,500, aged 60+
Succession Farm Partnership: €5,000 a year
"The incentive is worth an annual tax credit of €5,000 for up to 5 years." Across the full 5 years that is €25,000 of tax credits.
"The credit is split each year based on the profit-sharing ratio of the partnership between the farmer and their successors."
The partnership needs:
- At least 2 people, one of them younger than 40
- A "farmer" who has farmed at least 3 hectares for the past 2 years
- A "successor" under 40, with an agricultural qualification and at least 20% of the profits
- Registration with the Department's Register of Partnerships, with a Farm Partnership Registration Number
There is an order to it. "You must be part of a registered farm partnership before you can set up a Succession Farm Partnership." And the successor does not have to be family: "These incentives apply whether the successor is part of your family or not."
The tax reliefs on the transfer itself
Agricultural Relief is for the person getting the farm, against Capital Acquisitions Tax. "This reduces the taxable value of agricultural property and land by 90%." You must pass the Active Farmer Test.
Consanguinity Relief is for stamp duty between relatives. "This reduces stamp duty to 1% on family farm transfers that qualify." The person getting the land must farm it, or lease it to someone who farms it, for at least 6 years.
The person farming it must also have an agricultural qualification, or get one within 4 years, or spend at least half their time farming.
Young Trained Farmer Relief means no stamp duty at all, if you are under 35, have an agricultural qualification and have submitted a business plan to Teagasc. "There is a limit on the amount of relief that can be claimed."
Retirement Relief is for the person handing over. "If you are 55 or older, you may be able to claim Retirement Relief if you are passing on your farm or business. This is a relief from Capital Gains Tax."
Buying and selling land to join up your holdings has its own relief. Farm Consolidation Relief sets stamp duty at 1% on those transactions.
The grant that pays for the advice
"The Succession Planning Advice Grant can cover up to 50% of these costs, up to a maximum payment of €1,500." It covers legal, accounting and advisory costs.
- Aged 60 or older
- Farming at least 3 hectares
- Farming for at least 2 years
- Not already in a succession partnership
You apply with the Department's application form. Queries go to SPAGApplications@agriculture.gov.ie or 01 607 2857.
Leasing, selling, and making a will
If no one wants to farm it, leasing is an option. Income from a long lease can get income tax relief. "To qualify for this, you must lease the land for at least 5 years. You can’t lease the land to a close relative."
Selling means Capital Gains Tax, unless Retirement Relief applies.
Make a will. Without one, the standard rules apply: "Your spouse gets two thirds of your assets" and "Your children get a third". That rarely matches a plan to hand the farm to one child.
Common questions
How much is the Succession Farm Partnership tax credit?
€5,000 a year for up to 5 years, split between the farmer and the successor by their profit shares.
Does the successor have to be a family member?
No. Citizens Information says the tax incentives apply whether the successor is part of your family or not.
How much stamp duty is paid on a family farm transfer?
Consanguinity Relief can cut it to 1%, if the person getting the land farms it or leases it out for farming for at least 6 years and meets the qualification or time conditions. Under-35s may pay none under Young Trained Farmer Relief.
What is Agricultural Relief?
A relief from Capital Acquisitions Tax that reduces the taxable value of agricultural property and land by 90%, for someone who passes the Active Farmer Test.
Is there a grant for farm succession advice?
Yes. The Succession Planning Advice Grant covers up to 50% of legal, accounting and advisory costs, up to €1,500, for farmers aged 60 or older farming at least 3 hectares.
What happens to a farm if there is no will?
The standard rules apply: your spouse gets two thirds of your assets and your children get a third.
- €25,000 — €5,000 a year × 5 years = €25,000 in tax credits, if the partnership qualifies for all 5 years. It is split between the partners by their profit shares.