The Kerryman (South Kerry Edition)
Tax policy hinders farmers looking to expand their farms
ANNASCAUL farmer and Chairman of the ICMSA in Kerry, Pat Rohan, is calling on the Government to address what he sees as shortfallings in Budget 2012 with regards taxation.
Mr Rohan claims that while the Finance Bill provided for a number of welcome incentives announced in the Budget, it failed to address some anomalies in the taxation system.
He welcomed the exemption from Capital Gains Tax of compensation payments to turf cutters for giving up the right to cut turf in Special Areas of Conservation. However, he said a similar exemption should be extended to individuals wishing to purchase land close to their holdings in order to consolidate their farm enterprise.
“Current government policy is effectively penalising any farmer wishing to consolidate his or her holdings in order to grow and expand their business,” he said.
As Chairman of Kerry ICMSA, Mr Rohan is advocating that a Capital Gains Tax Roll-over Relief should be introduced on a limited basis to allow for farm consolidation and parcel swaps for individuals wishing to expand their enterprise.
“It is crucial that fulltime farmers in West Kerry, and indeed across the entire county, who may wish to enlarge their holding to grow their farm business into a viable unit must be allowed to do so with the minimum application of Stamp Duty,” he added.
“It is disappointing that the Finance Bill did not re-introduce Farm Consolidation Stamp Duty Relief to help achieve this,” he said.