Dáil Éireann Debate, Tuesday - 20 February 2018
144. Deputy Peter Burke asked the Minister for Finance if changes to the age limits for family transfers are being considered to mitigate higher stamp duty costs (details supplied); and if he will make a statement on the matter. [8162/18]
View answerI am advised by Revenue that based on the information supplied the transfer of the farm may be eligible for a stamp duty relief known as ‘consanguinity’ relief. This relief applies a reduced rate of stamp duty of 1% to transfers of farmland between certain blood relatives provided certain conditions are met. Since the enactment of the Finance Act 2017 on 25 December 2017, there is no age limit for consanguinity relief. For transfers executed prior to that date, it was a requirement that the person transferring the land be under 67 years of age. No age limit applied in relation to the person receiving the land and this continues to be the case.
In addition to being a relative of the transferor, the person to whom the land is transferred must either farm the land or lease it to someone who farms it for a period of not less than 6 years. The person farming the land must do so on a commercial basis and with a view to the realisation of profits. A further condition is that the person farming the land must devote at least 50% of his or her normal working time to farming or be the holder of one of the agricultural qualifications set out in Schedule 2, 2A or 2B to the Stamp Duties Consolidation Act (SDCA) 1999.
Another stamp duty relief known as ‘young trained farmer’ relief allows for full relief from stamp duty but imposes an age condition on the transferee. There is no relationship requirement for this relief. To qualify for this relief the transferee must, on the date of execution of the instrument of transfer, be under 35 years of age and hold one of the agricultural qualifications set out in Schedule 2, 2A or 2B to the SDCA 1999. As the transferee in this case is aged 37, a transfer of the farm would not qualify for ‘young trained farmer’ relief.
