Succession Farm Partnerships

With a focus on addressing issues around the age structure of farmers and to encourage the earlier transfer of agricultural assets to the next generation, the succession farm partnership model was launched in 2017. As part of the agreement, the asset owner (generally parent/aunt/uncle) must commit to transfer a minimum of 80% of the Agricultural assets to the successor between the end of year 3 and the end of year 10 of the succession plan. The time and details of the transfer are outlined in the succession agreement. Families that apply for a succession partnership can avail of €5,000 tax relief per year for a maximum of five years, up until the year prior to the young farmer turning 40. This tax relief is split in line with the profit sharing ratio of the partnership agreement. In the case of a succession farm partnership, the agreement must include natural people, therefore companies are excluded.

There are currently 162 active succession farm partnerships registered. It is not permitted to transfer the assets for the first three years of the succession partnership agreement, and as a result the age of the successor has implications for stamp duty relief. Unless the successor is under 32 years of age at the commencement of the succession partnership, they would no longer be eligible for the 0% stamp duty relief for young trained farmers and would instead have to consider the 1% stamp duty associated with consanguinity relief.

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