In its pre-budget submission for 2017, the ICSA is calling for an end to “the discrimination against self-employed in terms of tax credits”.

As part of this push, the ICSA would like to see the gradual phasing out of the USC over successive budgets, as well as a continuation of the process of equalising tax credits between employees and the self-employed begun in the last budget by implementing an earned income tax credit of €1,650.

The ICSA would also like to see higher capital acquisitions tax thresholds, having regard to the fact that the Category A threshold was €542,000 in 2009. The ICSA believes that the target for Category A in budget 2017 should be €350,000, up from the €280,000 announced in last year’s budget.

The ICSA is strongly opposed to any measures that effectively will increase diesel prices

It would also like to see the capital gains tax restructuring relief extended beyond the current deadline of 2016.

The ICSA is also proposing a rainy day measure, whereby farmers should be able to shelter a proportion of income from tax in a good year by putting it into a special account where it would be taxed on draw-down in a bad year. As a safeguard, there would be a maximum deferral period of five years.

It is also strongly opposed to any measures that effectively will increase diesel prices.

Support schemes

The ICSA says that support schemes “play a critical role” in terms of supporting farmer incomes, particularly low-income cattle and sheep farmers.

Therefore, it has asked that cuts be reversed to the Areas of National Constraint scheme (ANC), formerly known as Disadvantaged Areas Scheme, over two future budgets to the original €257m spend.

For the new sheep scheme, the ICSA would like to see the payment linked to a menu of options for farmers to choose from.

Under the Targeted Agricultural Modernisation Scheme (TAMS), the ICSA would like to see adequate funding in place in 2017 to ensure timely payment for works completed under this programme.

Excess BDGP money should be used up through top-up payments for calf weighing or the inclusion of extra participants

Under the Beef Data and Genomics Programme, the ICSA would like to see a full draw-down of the €300m in this scheme’s budget, taking into account the fact that the scheme has been under-subscribed. It says the excess money should be used up through top-up payments for calf weighing or the inclusion of extra participants.

Finally, the ICSA wants to see funding for the National Parks and Wildlife Service to complement locally-led schemes, which would operate on the basis that every designated hectare must be compensated.

Retirement

The ICSA believes that farmers face huge difficulties when retiring, in line with the rest of society. Therefore, it has asked that tax relief for pension contributions should continue at the marginal rate and take into account USC as well, until such time as USC is fully abolished.

The ICSA submits that the treatment of farm assets should be on the same basis as the family home, which means that the 7.5% liability on such assets should be for a maximum three years.