Taxes Consolidation Act 1997 section 667D

Succession farm partnerships

Section 667D provides a succession tax credit of €5,000 per annum in respect of succession farm partnerships, to encourage farmers to form partnerships with young trained farmers and to transfer ownership of the farm to those successors within a specified period.

• A registered farm partnership may apply to be entered on the register of succession farm partnerships where the farmer agrees to transfer at least 80% of the farm assets to one or more successors (under 40 with a recognised agricultural qualification) within 3 to 10 years of the application.
• For the year of registration and the following four years, the partnership receives a tax credit of €5,000 per year, divided between the partners in their profit-sharing ratios, or the amount of the assessable profits if less; no credit is due for any year in which a successor has reached 40 before the start of that year.
• If the agreed transfer does not take place, the tax credits are clawed back from the farmer (or from the successor if the successor declined to proceed, or from each partner individually if both mutually agreed not to proceed).
• The aggregate relief granted to a qualifying young farmer under this section, section 667B (enhanced stock relief) and section 81AA SDCA 1999 (stamp duty relief on land transfers) must not exceed €100,000.