Tax reliefs for farmers passing on or restructuring land

Agricultural Relief cuts the taxable value of an inherited farm by 90%. Retirement relief, stamp duty reliefs and Budget 2027 changes also help farmers.

Passing on a farm can involve three taxes. They are Capital Acquisitions Tax (CAT) for the person receiving it, and Capital Gains Tax (CGT) for the person giving it during their lifetime. The third is stamp duty on the transfer deed. Each has reliefs for farming families.

Gift and inheritance tax: Agricultural Relief

Agricultural Relief reduces the taxable value of farmland, buildings, livestock and machinery by 90%. To qualify, at least 80% of your total assets at the valuation date, counting the farm, must be agricultural. For six years you must farm it commercially or lease it to someone who does. You (or the person leasing) must hold an agricultural qualification or farm for at least half your normal working time. See Revenue's conditions.

The relief is clawed back if the land is sold within six years and not replaced within a year. It is also clawed back if the farming conditions stop being met. A Form IT38 return is always needed when you claim it.

CGT for the person passing it on

• Retirement relief: from 55, relief of up to €10 million on a transfer to a child (to age 69)
• Farm Restructuring Relief: selling land to buy land nearer the farm
• a site transferred to a child to build their home is free of CGT. It must be one acre or less and worth €500,000 or less

Stamp duty

Revenue's farm reliefs include:

• Young Trained Farmer Relief: for farmers under 35, with an agricultural qualification (or one within three years) and a Teagasc business plan. You must spend at least half your working time farming the land and keep it for five years. EU State Aid limits apply
• Consanguinity Relief (land passed to a relative): a reduced rate if you farm the land, or lease it to a farmer, for six years
• relief on long leases of farmland of six to 35 years

Budget 2026 extended Young Trained Farmer Relief and Farm Consolidation Relief to the end of 2029 (Citizens Information).

Budget 2027 for farmers

These take effect when Finance (No. 2) Bill 2026 is enacted:

• the Succession Farm Partnership tax credit doubles from €5,000 to €10,000 for partnerships registered from 1 January 2027. The three-year holding period goes for applications from that date
• faster capital allowances (cost written off) of 50% a year for farm safety equipment are extended to 31 December 2029, with 12 more items
• the flat-rate addition for unregistered farmers rises to 4.8% for 2027
• a 9% VAT rate is planned for non-oral respiratory vaccines for livestock

Work it out

• Gift and inheritance tax (CAT) →
• Stamp duty when farmland passes on →
• Capital Gains Tax on property →

Sources

• Revenue: CAT Agricultural Relief (taxable value reduced by 90%) (checked 25/10/2026)
• Revenue: CAT group thresholds (€420,000 / €44,000 / €22,000 from 7 October 2026) (checked 25/10/2026)
• Revenue: How to calculate CGT (checked 25/10/2026)
• Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
• Citizens Information: Budget 2027 (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.