Michael Finucane
Question:4 Mr. Finucane asked the Minister for Finance if he will reintroduce the stamp duty exemption in order to encourage the transfer of farms to young farmers.
Ceisteanna — Questions. Written Answers. - Stamp Duty Exemptions.
A previous stamp duty exemption for the lifetime transfer of farms to young, trained farmers existed from 1982 until 1987, when it was terminated. Studies of the operation of the exemption which were carried out at the time indicated that it did not have any significant impact on the pattern of land transfer. Furthermore, it was estimated that the cost to the Exchequer of the exemption in the last full year of its operation, 1986, was £5 million.
However, it has been suggested that the interaction of stamp duties and capital acquisitions tax on the lifetime transfer of farms was tending to postpone the transfer of the farm until the death of the farmer. Accordingly, I indicated during the debate on the 1992 Finance Act that the overall tax treatment of gifts would be examined to see it it discouraged the lifetime transfer of farms in favour of the inheritance of farms. The results of this examination will be considered in the context of the formulation of the 1993 budget.