Succession farm partnerships
A succession farm partnership lets a farmer and their successor farm together for a few years before the farm passes on, with a tax credit to help. Budget 2027 doubles that credit for partnerships registered from 1 January 2027.
In short
- The farmer and successor form a registered farm partnership and sign an agreement to transfer at least 80% of the farm assets.
- The successor must be under 40, hold an agricultural qualification and take at least 20% of the profits.
- The tax credit is €5,000 a year for up to 5 years, rising to €10,000 for partnerships registered from 1 January 2027.
- If the transfer doesn't happen, the credits are clawed back.
Who qualifies
- The farmer must have farmed at least 3 hectares in their own right for the previous 2 years.
- The successor must be under 40, hold an appropriate agricultural qualification, and be entitled to at least 20% of the partnership's profits.
- The partnership must have at least two members, and be on the Department of Agriculture's Register of Farm Partnerships.
The transfer
The farmer signs a legally binding agreement to transfer, or sell, at least 80% of the farm assets to the successor within 10 years of applying. Until now the transfer couldn't happen in the first 3 years. Budget 2027 removes that wait for applications made from 1 January 2027.
The tax credit
| Partnership registered | Credit a year | For up to |
|---|---|---|
| Before 1 January 2027 | €5,000 | 5 years |
| From 1 January 2027 | €10,000 | 5 years |
The credit is shared between the partners in line with how they split the profits, and can be set against any income tax they pay, including on off-farm income. It's reduced if the partnership's profits are lower than the credit.
Revenue counts the credit towards the same €100,000 lifetime limit as young trained farmer stamp duty relief, so it can leave less relief for the stamp duty on the transfer itself.
How to set one up
- Register the partnership on the Department's Register of Farm Partnerships.
- Complete the Teagasc "My Farm My Plan" farm plan, which Teagasc certifies.
- Apply to the Succession Farm Partnership Register with a 5-year business plan, proof of the successor's age and the signed transfer agreement.
The clawback
If the transfer doesn't go ahead as agreed, or a partner pulls out, the tax credits that were claimed must be paid back.
When the farm transfers
The transfer at the end is a gift, so the usual rules apply: inheritance tax with agricultural relief, the parent's capital gains tax with retirement relief, and stamp duty. The gift or inheritance guide explains each one.
Common questions
How much is the succession farm partnership tax credit?
€5,000 a year for up to 5 years, shared between the partners in line with their profit shares. For partnerships registered from 1 January 2027, it rises to €10,000 a year.
Who can be the successor in a succession farm partnership?
Someone under 40 who holds an appropriate agricultural qualification and is entitled to at least 20% of the partnership's profits.
What happens if the farm isn't transferred?
The tax credits that were claimed are clawed back.
See what the reliefs would mean for your own farm. It takes about five minutes, and your answers stay on your phone.