Budget 2025 – here’s what beef farmers need to know

The Beef Edge

Teagasc Financial Specialist Kevin Connolly is on this week’s Beef Edge podcast to discuss the main headline items arising from Budget 2025, from tax cuts to increased spending.

Kevin explains that the income tax standard rate bands have been increased by €2,000. The income tax rates (20% & 40%) have not been changed. There has been a €125 increase in the principle tax credits.

The rate applying to the middle USC band has been reduced from 4% to 3%. There has also been a realignment of the bands. The three Stock Relief measures have been further extended

Changes will kick in from 1 Jan 2025 to the Capital Gains Tax (CGT) Retirement Relief upper limits with changes to the upper age from age 66 to age 70 where limits are reduced.

The €10 million limit applying to transfers from parent to child will also carry a longer clawback period to be complied with by the recipient.

The Capital Acquisitions Tax (CAT) thresholds have been increased with no change in the rate. A change has been made to Agricultural Relief whereby the Active Farmer conditions will also apply to the donor.

The VAT flat rate farmer addition rate is to increase from 4.8% to 5.1% from 1st January 2025. There are also changes to the VAT registration thresholds.

Additional funding allocated for specific measures relating to agriculture are:

· Sheep Welfare scheme: increase by €5 per ewe to total of €13 per ewe

· Beef Welfare scheme: increase by €25 per calf to total of €75 per calf

· Dairy Beef Scheme: increase by €20 per calf to a total of €40/calf

· Tillage Farming support: new €100/ha scheme supporting farmers to increase their area in tillage crops

· ACRES: additional €60m bringing total allocation of €260 million for 2025

· National Forestry Programme: €91 million in funding

· Multi-Species €1.25m / Red Clover Swards €1.5m — to support the planting of these swards

· Farm Safety: budget of €2.5 million to support initiatives

· Soil Sampling Scheme: continued funding of €6 million

For more episodes from the Beef Edge podcast, visit the show page at:
https://www.teagasc.ie/thebeefedge

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