Tuesday, 24 November 2020

Questions (261)

Michael Healy-Rae


261. Deputy Michael Healy-Rae asked the Minister for Finance the stamp duty payable on the sale of a family farm after a death; and if he will make a statement on the matter. [37758/20]

View answer

Written answers (Question to Finance)

I am advised by Revenue that, in the normal course of events, stamp duty is chargeable on the purchase of agricultural land at the rate of 7.5% and is payable by the purchaser of the land. The fact that the sale happens after a death does not change this position.

In some circumstances an exemption from stamp duty or a reduced charge applies. However, as the Deputy hasn’t supplied any details about the particular situation involved, it isn’t possible for Revenue to say whether or not the full stamp duty charge would apply in this case. Some details about the potential exemptions and reliefs that can apply where agricultural land is purchased are set out below.

Exemption for ‘young trained farmers’

Stamp duty is not payable where a purchaser is under the age of 35 years, obtains a recognised agricultural qualification and satisfies other conditions in relation to the use of the land following the purchase. These conditions include the requirement for a purchaser to spend at least 50% of his or her normal working time farming the land and to retain ownership of that land for a period of at least five years from the date of execution of the deed transferring the land.

Farm consolidation relief

Where a Teagasc-approved consolidation of farmland takes place, involving both a sale and purchase of land, stamp duty at a reduced rate of 1% applies to the excess of the value of land purchased over the value of land sold. The purchase and sale must take place within a 24-month period of each other.

Consanguinity relief

Where agricultural land is purchased from certain relatives (such as parents, grandparents, aunts, uncles) stamp duty is chargeable at a reduced rate of 1% on the value of the land. Certain conditions must be satisfied such as the requirement for the purchaser to farm the land or to lease it to someone who farms the land.

Information about the available stamp duty reliefs and exemptions can be found in the “Property” section on the home page of the Revenue website (www.revenue.ie) by following the “stamp duty” link.