What is Agricultural Relief for CAT in Ireland?

Agricultural Relief reduces the value of qualifying agricultural property (farmland, buildings, livestock, crops) to 10% of its market value for Capital Acquisitions Tax (CAT) purposes — a 90% reduction. The beneficiary must be a "farmer" (at least 25% of their total gross assets must consist of farming assets immediately after the inheritance). The property must be kept for at least 6 years.

What is Stock Relief for farmers?

Stock Relief allows farmers to deduct 25% of the increase in the value of trading stock (livestock, feed, fertiliser, crops) in a tax period. For certain young trained farmers, the relief is increased to 100% of the stock increase. The relief reduces your income tax liability and is claimed through your annual Form 11 tax return.

What is Farm Restructuring Relief?

Farm Restructuring Relief provides a full exemption from stamp duty on the transfer of land for the purpose of farm consolidation or restructuring. The relief applies when a farmer buys or exchanges land to consolidate their holding. The land must be used for farming for at least 5 years after the transfer. A certificate from Teagasc is usually required.

What is Young Trained Farmer Stamp Duty Relief?

Young trained farmers aged 18-35 can claim 100% exemption from stamp duty on the transfer of agricultural land (up to a certain value). You must hold a specified agricultural qualification (QQI Level 6 or equivalent, or a Green Cert), and must farm the land for at least 5 years. The relief must be claimed within 6 months of the transfer.

Can I claim multiple farm tax reliefs together?

Yes — many farm reliefs can be claimed in combination. For example, a young trained farmer can claim Stock Relief (100% on stock increase), Young Trained Farmer Stamp Duty Relief (100% exemption), and Agricultural Relief (90% CAT reduction) in the same year. Each relief has its own qualifying conditions — meet all of them and you can substantially reduce your overall tax bill.

Farm Tax Reliefs Guide · 2026

Farm Tax Reliefs Ireland 2026: Complete Guide for Farmers

Irish farmers can access a range of valuable tax reliefs — from Agricultural Relief(90% CAT reduction) to Stock Relief (25-100% deduction on stock increases), Farm Restructuring Relief (stamp duty exemption), and Young Trained Farmer Relief (100% stamp duty exemption). Combined, these reliefs can save farmers tens of thousands of euro each year. Use our Stamp Duty & LPT Calculator to estimate your property tax costs.

🌾 Agricultural Relief (90% CAT Reduction)

Agricultural Relief is one of the most generous tax reliefs in Ireland. When you inherit or receive a gift of agricultural property, its value for CAT purposes is reduced to just 10% of market value — a 90% reduction.

Conditions

• The beneficiary must be a farmer — at least 25% of their total gross assets must be farming assets immediately after the inheritance
• Must retain the agricultural property for 6 years from the valuation date
• The property must be used for agricultural purposes throughout the 6-year period
• Can apply to farmland, buildings, livestock, crops, and bloodstock
• Does NOT apply to farm houses unless they're integral to the farm

Example: Farm Valued at €500,000

Market value€500,000

Agricultural value (10%)€50,000

CAT without relief (33% × €500k)€165,000

CAT with relief (33% × €50k)€16,500

Tax saved: €148,500

🐄 Stock Relief (25-100%)

Stock Relief allows farmers to deduct a percentage of the increase in the value of their trading stock from their income each year. This includes livestock, feed, fertiliser, seeds, crops, and other farm supplies.

Farmer Type	Relief Rate	Example: €20k Stock Increase
Standard farmer	25%	€5,000 deduction
Young trained farmer (under 35)	100%	€20,000 deduction

How Stock Relief Works

The relief applies to the increase in stock value from one accounting period to the next. For a standard farmer, 25% of that increase is deducted from taxable profits. For a young trained farmer (under 35 with a qualifying qualification), the full 100% of the increase is deductible — effectively making the stock growth tax-free.

🏘️ Stamp Duty Reliefs

Farm Restructuring Relief

Full stamp duty exemption on the transfer of farmland to consolidate or restructure your holding. Key conditions:

• Must consolidate or restructure the farm
• Land must be farmed for at least 5 years
• Requires Teagasc certificate
• Usually must involve exchanges or boundary adjustments
• Claimed via Revenue's Stamp Duty Online system

Young Trained Farmer Relief

100% stamp duty exemption for young trained farmers aged 18-35 on the transfer of agricultural land. Key conditions:

• Must be aged 18-35 at date of transfer
• Must hold a Green Cert or QQI Level 6 agri qualification
• Must farm the land for at least 5 years
• Must claim within 6 months of transfer
• Applies to gifts, inheritances, and purchases

Example: Young Farmer Buys €300,000 Farmland

Land value€300,000

Stamp duty without relief (7.7%)€23,100

Stamp duty with Young Trained Farmer Relief€0

Tax saved: €23,100

Other Farm Tax Reliefs

🌱 Farm Succession Planning Relief

Transfers of farms to a successor (typically a child) benefit from enhanced Retirement Relief (no CGT cap) and Agricultural Relief (90% CAT reduction). Proper succession planning can transfer a farm worth millions with minimal tax — one of the most tax-efficient ways to pass on wealth in Ireland.

🚜 Farm Diesel Relief

Farmers can use marked gas oil (green diesel) for agricultural vehicles and machinery at a reduced excise rate. The current rate is significantly lower than standard road diesel. This is not a tax relief you claim on your return — it's applied at the point of purchase through the fuel supplier.

🧑‍🌾 Farm Assist Scheme

While not a tax relief, the Farm Assist Scheme provides means-tested income support to low-income farmers. The means test is more generous than standard Jobseeker's Allowance — it disregards the first €254 of farm income per week and 70% of income above that. Eligible farmers can receive up to €232 per week.

Farm Reliefs at a Glance

Relief	Tax Type	Benefit	Max Duration
Agricultural Relief	CAT	90% reduction	6-year holding
Stock Relief	Income Tax	25-100% deduction	Annual
Farm Restructuring Relief	Stamp Duty	100% exemption	5-year holding
Young Trained Farmer Relief	Stamp Duty	100% exemption	5-year farming
Retirement Relief	CGT	Up to €750k exempt	Lifetime

Frequently Asked Questions

Can a non-farmer inherit a farm and claim Agricultural Relief?

No — the beneficiary must meet the "farmer" test (at least 25% of their gross assets must be farming assets immediately after the inheritance). If a non-farmer inherits a farm, they pay full CAT at 33% on the market value above their group threshold. However, they could lease the farm to a farmer or sell it — but no Agricultural Relief applies.Calculate your Stamp Duty →

How do I qualify as a "young trained farmer" for Stock Relief?

You must be under 35 years old and hold a recognised agricultural qualification — typically a Green Cert (FETAC/QQI Level 6 in Agriculture or equivalent), or a degree in agricultural science. You must also farm the land on a commercial basis and with the intention of making a profit. The relief applies for the first 4 years of farming.Calculate your Stamp Duty →

Does Farm Restructuring Relief apply to buying additional land?

Yes — but only if the purchase results in farm consolidation (e.g., buying an adjoining field to merge with your existing holding, or selling a distant parcel and buying a closer one). The relief does NOT apply to general land purchases that don't involve restructuring. You'll need a Teagasc certificate confirming the restructuring purpose.Calculate your Stamp Duty →

Can I claim VAT back on farm purchases?

If you're a registered farmer under the VAT flat-rate scheme, you can claim back VAT on qualifying farm inputs. Registered farmers charge 5.2% (adjusted periodically) on their agricultural produce and can reclaim VAT on purchases of farm machinery, buildings, feed, and other inputs. Unregistered farmers cannot reclaim VAT.Calculate your Stamp Duty →

What happens if I sell the farm within the 6-year Agricultural Relief period?

The relief is clawed back. You'll have to pay the CAT that was saved, plus interest. However, there are exceptions for "involuntary" disposals (e.g., compulsory purchase orders) and certain transfers between family members. If you must sell, seek professional advice to see if any exceptions apply to your situation.Calculate your Stamp Duty →