Business Plus

‘Farmers are getting older and succession is becoming more complicate­d’


ACTIVITY Succession is always a busy tax area for our clients. Farmers are getting older, and succession is becoming more complicate­d as companies are brought into the equation. The new grant offered by the Department of Agricultur­e for farmers over the age of 60 will lead to even more work. However, succession needs to be considered as early as possible in order to sustain the business and keep potential successors interested.

The impact of potential solar panel leases coming into effect, and the limitation of a maximum of 50% of the land that can be leased for solar, has increased succession planning work, as farmers need to understand whether the potential lease of the land will impact the amount of tax they pay on succession. There is also obviously a valuable asset being created, and our clients want to understand the contingenc­ies they can build into agreements to participat­e in any of the rents should the solar options go ahead after a succession event.

TAX POLICY Ireland is a global hub based on the success of the corporatio­n tax rate. This advantage has served its purpose, and the key is now to encourage developmen­t so that the infrastruc­ture required to maintain the advantage gained is not lost. The tax policy should follow suit to develop the infrastruc­ture required.

TAX INCENTIVES Pensions are obviously a major tax benefit for sole traders. If the owner-manager and profession­als want to build out their businesses and enter a growth phase, a company can be a huge benefit. The cost of capital from a taxation point of view is extremely good and allows for the growth of the business. When the time comes for succession and movement, one of the business companies allows for a number of different options on how to attract talent and keep them in the business.

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