Succession Farm Partnership

Succession Farm Partnerships are an income tax incentive to encourage farmers to transfer the farm business to their identified farming successor or successors. Existing partnerships that are registered with the Department can transfer to the Succession Farm Partnership register by fulfilling the additional criteria required by the incentive.

The incentive is in the form of an annual income tax credit of €5,000 for up to five years. The credit is split annually based on the profit sharing ratio of the partnership between the farmer and the successor or successors.

To qualify for the scheme, you must meet the following conditions:

• the farm partnership must firstly be entered on the Department’s Register of Farm Partnerships and have an appropriate Farm Partnership Registration Number (FPRN)
• the farm partnership must have at least 2 members and at least one must not yet have reached 40 years of age
• at least one partner in the succession farm partnership must have farmed at least 3 hectares in their own right for the two previous years - this person is defined as the “farmer”
• at least one other partner under 40 must have an appropriate qualification in agriculture and they must hold an entitlement to at least 20 % of the profits of the partnership - this person is defined as the “successor”
• the farm partnership must apply for entry on to the Succession Farm Partnership Register in writing

The application must be accompanied by the following documents:

• a 5-year business plan setting out the evolution of the partnership over that period of time
• a legally binding agreement showing the plans to transfer or sell a minimum of 80% of the registered farm partnership’s farm assets to one or more of the members under 40 years of age in a time period beginning 3 years after the date the application is made and ending 10 years after the date the application is made
• documentary evidence that the relevant members are under 40 years of age at time of application

The Teagasc My Farm My Plan Booklet must be completed for the partnership. Teagasc is the certification body for this farm plan. Applicants must comply with the conditions of the scheme as outlined the Department’s guidance booklet.

To make an application, you should speak to your farm advisor in the first instance. It is also recommended that you take professional legal and financial advice before entering into a Succession Farm Partnership agreement.