Martin Ferris TD calls for tax derogation for farmers selling entitlements
Sinn Féin spokesperson on Agriculture, Martin Ferris TD today called on Minister Simon Coveney to intervene directly with the Department of Finance for a tax derogation for farmers who are being forced to sell their CAP/SFP entitlements within two months.
Deputy Ferris said:
“I am calling on Minister Coveney to make a decision regarding the tax implications for farmers before 15 May 2014, which is the deadline for transfer of entitlements under the new scheme.
“Many farmers leased their land last year in the belief that their entitlements would revert to them in due course.
“Now, 6,500 farmers find themselves compelled to sell their entitlements or lose them. The consequences of selling them is that they must pay Capital Gains Tax of 33%.
“Some farmers find themselves in a situation in which they thought their land and its entitlements could be leased out for years to come, as an income supplement, but now find that instead, they must sell at current market value and pay 33% tax on the proceeds
“Minister Coveney must directly intervene with the Department of Finance for a tax derogation to ensure that farmers are not penalised in this situation.”