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Family & Childcare Law

Succession Farm Partnerships

Farm Partnerships are on the increase in Ireland.  A Farm Partnership occurs where two or more farmers pool resources in order to acquire various benefits.  A new type of farm partnership known as a Succession Farm Partnership has been introduced in 2017.  The benefit of this scheme is that certainty is provided to the farmer by way of planned succession of the farm and farming assets.  In addition to the usual benefits of a farm partnership, the Succession Farm Partnership provides an income tax incentive to encourage the transfer of the farm and agricultural assets.  There is a tax incentive to the partnership of €5,000 for up to five years during the succession agreement term.

To qualify for the scheme the successor must be under 40 years of age in order to claim the tax credit.  There may be more than one successor named under the scheme. 

Under the terms of the scheme the farmer will be required to transfer a minimum 80% of all of his/her assets to the successor(s).  The successor must also be a Young Trained Farmer who is in receipt of 20% of the partnership profits. 

The farm partnership must be recorded on the Department of Agriculture Register of Farm Partnerships to avail of the Succession Farm Partnship Scheme.  The parties to the Succession Farm Partnership Scheme must sign a legally binding Succession Agreement which should be tailor made for each partnership circumstances. 

It is important the farmer and successor obtain legal advice before entering into a Succession Farm Partnership Agreement and that the farmer has a valid Will reflecting his/her wishes in relation to the succession of the farm and assets.  

If you require any further information in relation to the above, please contact Marguerite Phillips, Solicitor, This email address is being protected from spambots. You need JavaScript enabled to view it. of Cashin & Associates 

19th September 2017

 

 

This information is intended as a guide only and does not purport to be a legal interpretation. While every care is taken to ensure a quality service, Cashin & Associates does not give any guarantees, undertakings or warranties concerning the accuracy, completeness or up-to-date nature of information provided. Users are responsible for confirming information from the full text from published sources. 

 

Cashin & Associates Solicitors,
3 Francis Street, Ennis, Co. Clare, Ireland
Dublin Office: 64 Francis Street, Dublin 8
T: 00 353 65 6840060  F: 00 353 65 6840034
E: info@cashinlaw.com