Budget 2025 – here’s what beef farmers need to know
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.
Listen in below:
Taxation measures
On the Beef Edge, 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.
Other measures of note include:
- 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 January 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.
Measures specific to agriculture
Through Budget 2025, funding was allocated for specific measures relating to agriculture including:
- Sheep Welfare Scheme: increase by €5/ewe to total of €13/ewe
- Beef Welfare Scheme: increase by €25/calf to total of €75/calf
- Dairy Beef Scheme: increase by €20/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, produced on behalf of Teagasc by LastCastMedia.com, visit the Beef Edge podcast show page.
Further information on Budget 2025
For further information, Kevin Connolly, Teagasc Financial Management Specialist, has provided a summary of the main budget measures, plus an outline of other tax changes implemented recently which impact the farming sector.