Vol. 509 No. 4
199 Mr. Creed asked the Minister for Finance if he will consider the difficulty in attracting young people into agriculture when framing his budget; and if he will specifically consider the question of stamp duty on land transfers in this context. [20289/99]
To promote lifetime transfers of land, section 112 of the Finance Act, 1994, provided for a reduction of two-thirds in the amount of stamp duty which would otherwise be chargeable on the transfer of agricultural land to a young trained farmer. This relief was introduced for a three year period and was extended for a further three years until 31 December 1999 in the Finance Act, 1997, in line with a commitment given in Partnership 2000 for inclusion, employment and competitiveness. No other sector can avail of such a generous relief.
Furthermore, transfers of agricultural land between relatives attract stamp duty at half the normal rates of duty, and in such a case where the section 112 relief also applies, the rate of duty is reduced to only 1 per cent.
Finally, transfers of agricultural property by way of inheritance or gift can avail of the 90 per cent capital acquisitions tax agricultural relief. In the case of a child receiving a gift or inheritance from a parent, property valued up to £1.929 million can transfer free of CAT subject to certain conditions.
200 Mr. Farrelly asked the Minister for Finance the income the Government received on the 2 per cent insurance levy for each of the past five years; the way in which this is being used; the plans, if any, he has to abolish this in the forthcoming budget; and if he will make a statement on the matter. [20414/99]
Stamp duty at 2 per cent is imposed on almost all non-life insurance premia. The exceptions include reinsurance, health insurance, marine, aviation and transit insurance and export credit insurance. Similar levies exist in other EU countries and, in general, at rates higher than 2 per cent. The levy was introduced to broaden the stamp duty base, thereby raising additional revenue from a source other than income tax. Consequently, at this stage, I have no plans to abolish this levy.
The stamp duty yield from this source for the years 1994 to 1998 is as follows:
|
Year |
Yield |
|
£m |
|
|
1994 |
25.21 |
|
1995 |
29.32 |
|
1996 |
28.43 |
|
1997 |
30.45 |
|
1998 |
33.33 |
