Brendan Griffin
Question:93. Deputy Brendan Griffin asked the Minister for Finance if the young trained farmer stamp duty relief age limit will be increased to 40 years of age; and if he will make a statement on the matter. [27701/20]
View answerThursday, 1 October 2020
Questions (93)
Written answers
The young trained farmers stamp duty relief, which is currently due to expire on 31 December 2021, provides a full exemption from stamp duty on transfers of farm land to certain young trained farmers.
Section 81AA of the Stamp Duty Consolidation Act 1999 (SDCA 1999) provides for the stamp duty exemption in legislation. Amongst the eligibility tests for the relief set out in that section is an age limit, whereby the transferee (the person coming into possession of the land) must be under 35 years of age on the date of execution of the deed of transfer of the land.
As well as satisfying the age requirement, to qualify for this relief the farmer must have attained a minimum agricultural education standard which is set out on a list of qualifications in Schedule 2B of the SDCA 1999. The young trained farmer, or each of them if there is more than one must retain ownership of the land for a period of 5 years from the date of execution of the instrument and during that time must devote not less than 50 per cent of his or her normal working time to farming the land. The exemption granted will be clawed back if the land is disposed of within a five-year period and is not replaced within one year of disposal. The transfer can be by gift or sale, but transfers by lease do not qualify for the stamp duty exemption. The young trained farmer must also submit a business plan to Teagasc before the execution of the deed transferring the land.
It is also important to note that the young trained farmer stamp duty relief is just one of a series of tax measures, including consanguinity stamp duty relief, designed to encourage the intergenerational transfer of farms. The primary policy objectives of the Government in agri-taxation are to support and encourage the increased mobility of farm land to a new generation of farmers with relevant qualifications. The 35 year old age limit is long established for young trained farmer stamp duty relief and has applied since 1994.
The paper on Stamp Duty prepared by my Department for the Tax Strategy Group which took place on 10 September, notes possible inconsistencies in terms of the age at which one ceases to qualify as a “young trained farmer” and my Department will further examine this issue with a view to reporting on the outcome to me in advance of Budget 2022.