Finance Act 2018

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Amendment of Part 23 of Principal Act (farming and market gardening)

21. Part 23 of the Principal Act is amended—

(a) in section 657—

(i) in subsection (1), by deleting the definitions of “an individual to whom subsection (1) applies”, “company” and “director”,

(ii) by deleting subsections (2) and (3),

(iii) in subsection (4)(a), by deleting “other than an individual to whom subsection (1) applies,”, and

(iv) in subsection (6), by substituting the following paragraph for paragraph (b):

“(b) This subsection shall not apply for any year of assessment in which the individual is not chargeable to tax on profits or gains from farming.”,

(b) in section 666(4)—

(i) in paragraph (a), by substituting “31 December 2021” for “31 December 2018”, and

(ii) in paragraph (b), by substituting “year 2021” for “year 2018”,

(c) in section 667B—

(i) in subsection (5)(b), by substituting “31 December 2021” for “31 December 2018”,

(ii) in subsection (5A)(b), by substituting “Subject to subsection (5B), where” for “Where”,

(iii) by inserting the following subsection after subsection (5A):

“(5B) The aggregate amount of relief, within the meaning of subsection (5A), granted to a qualifying farmer under this section, section 667D and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014⁴ or that Regulation as may be revised from time to time.”,

and

(iv) in subsection (7), by substituting “microenterprise or small enterprise in Article 2 of Annex I to Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time” for “ ‘small and medium-sized enterprises’ in Article 2 of Commission Regulation (EC) No. 1857/2006 of 15 December 2006”,

(d) in section 667C—

(i) in subsection (2)(b), by substituting “2021” for “2018” in each place,

(ii) in subsection (4), by substituting “31 December 2021” for “31 December 2018”, and

(iii) in subsection (4A)(a)(vi), by substituting “subsection (1A)(b)(v)(II)(A)” for “subsection (1A)(c)”,

and

(e) in section 667D—

(i) in subsection (2)(e), by substituting “agreement under subsection (2)(d)” for “partnership agreement”, and

(ii) by inserting the following subsection after subsection (7):

“(8) (a) In this subsection—

‘relevant tax’ means any income tax or universal social charge;

‘relief’ means an amount equivalent to an amount determined by the formula—

A - B

where—

A is the amount of relevant tax that would be payable by a partner in a succession farm partnership for a year of assessment in which a succession tax credit is claimed by the partner, computed as if this section did not apply, and

B is the amount of relevant tax payable by the partner for that year of assessment.

(b) The aggregate amount of relief granted to a person under this section, section 667B and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time.”.

⁴ OJ No. L193, 1.7.2014, p.1