‘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.