Under the relief young farmers can write off increases in the value of their stock against tax liability.
This measure allows young trained farmers under 35, who meet certain criteria, to avail of 100 per cent Stock Relief for their first four years in farming. Stock Relief allows farmers to offset increases in the value of stock against their tax liability. The relief applies when the value of stock at the end of the year is greater than it was at the beginning of the year. Under the Finance Act there is provision for 100 per cent relief and also 25 per cent Stock Relief for all farmers up to 31st December 2008.
Stock Relief is a particularly effective and targeted measure, as it directly assists active young farmers who are building up their businesses
This measure aids young farmers to build up stock numbers during their first four years in production and allows all farmers to write off 25 per cent of the increase in the value of their stock.