Budget 2017 For Farmers In Ireland

budget

Budget 2017 was announced yesterday October 11th and in it included several key measures for Farmers in Ireland.

Low Cost Loans

Minister for Finance, Michael Noonan announced that there will be a new low-cost flexible loan fund available for Irish farmers which will be worth €150m. The aim of this is to help improve farmers cash flow and alleviate income volatility.

The loan is available to livestock, tillage and horticulture farmers and will have an interest rate of 2.95%. Farmers will be able to borrow up to €150,000 and there is no minimum amount of borrowing.

Farmers in Ireland will be able to apply for this loan in the early new year, more details are to be provided in November.

Income Averaging Step Out

The income averaging scheme will be maintained but with an “opt out” clause where in a single year of unexpected poor income and pay only the tax due on the current year and defer tax liability over subsequent years.

This will be available immediately and should help ease cash flow problems on farms in Ireland this year.

Capital Gains Tax & Capital Acquisitions Tax Changes

As of January 2017, a reduced capital gains tax of 10% will allow to the disposal in whole or in part of a business to an overall limit of €1m.

Group A lifetime tax-free threshold applying to gifts and inheritances from parents to children is being raised from €280,000 to €310,000. Group B for gifts and inheritances made to parents, sibling, nieces or grandchildren is being raised from €30,150 to €32,500. Group C for gifts and inheritances to all others is being raised from €15,075 to €16,250.

Farm Assist

The farm assist scheme will have 500 new places

Universal Social Charge

Some small adjustments to USC include

1% drop to 0.5%

3% drop to 2.5%

5.5% drop to 5%