Ifac is advising Tipperary farmers that creating a Joint Herd Number structure can have significant positive partnership and tax consequences. Joint Herd Number structures have become increasingly common in the last few years as Young Trained Farmers(YTFs) added to a herd number become eligible for YTF Top-Ups of up to €8,000 per year for up to five years. Arrangements such as the farmer and the Young trained Farmer having a joint bank account for the top up payment and a written declaration, that the YTF has a significant level of control on the farm and is farming, must be in place.
Creating a Joint Herd Number structure has potential tax consequences affecting Income Tax, Capital Acquisitions Tax and Capital Gains Tax. The impact differs depending on whether or not a partnership is in place between the herd owner and the YTF, typically a younger family member related to the farmer. IFAC advises both parties to be fully informed when setting up such structures.
