IT looks like being a case of ‘try again’ at next year’s Budget as the IFA attempts to get the stamp duty rate on agricultural land payable at the lower 2% level, rather than the new 6% rate introduced earlier this month.
Finance Minister, Paschal Donohoe, has stood firm on the ‘no concession’ line as regards the 6% rate of stamp duty he imposed on all commercial land and property deals from October 11 last, in his Budget for 2018.
According to the IFA post-Budget briefing note on the Finance Bill, 2017, the main concessions granted relate to stamp duty on family transfers that includes:
■ To the end of 2020, a reduced stamp duty rate of 1% will apply to farm transfers that take place between family members. This reduced rate is known as consanguinity relief.
■ In this time period [up to the end of 2020], there is no age restriction either on the person that’s giving the land or on the person receiving it with a stamp duty rate of 1% applying. One condition is that the land must continue to be actively farmed.
■ The stamp duty exemption for young trained farmers remains in place. A farmer under 35 years of age, with the required agricultural qualification, can benefit from a full exemption from stamp duty.
■ In summary with family transfers, there is a zero % rate of stamp duty where the ‘receiver’ of the land is a young trained farmer and a rate of 1% for all other family transfers.
Rose Mary McDonagh, Galway IFA Business Committee Chairperson, told the Farming Tribune, that despite the best efforts of the IFA, the 6% stamp duty rate on land still applied.
For more, read this week’s Connacht Tribune.