Dáil Éireann Debate, Tuesday - 5 October 2021
191. Deputy Matt Carthy asked the Minister for Finance if he plans to retain consanguinity relief in its current form for the duration of the current Government; and if he will make a statement on the matter. [48072/21]
View answerConsanguinity relief provides, under certain conditions, for a 1% rate of stamp duty to be applicable where a transfer of agricultural land (by sale/purchase, exchange or gift) is made to certain close relations, such as a mother to son or uncle to niece. The standard rate of stamp duty applying to the transfer of agricultural land is 7.5%.
In line with Government policy, it is intended to both encourage and facilitate intergenerational farm transfers.
The consanguinity stamp duty relief (as set out in Schedule 1 of the Stamp Duties Consolidation Act 1999) was last extended in section 53 of Finance Act 2020. It is next due to expire at the end of 2023.
It is my view that extending such tax reliefs in three year increments provides an appropriate balance between delivering a degree of medium-term certainty in respect of the availability of a relief for those planning to avail of it, as well as for those operating it, and the need for the relief to be reviewed regularly by my Department (with the assistance of the Department of Agriculture, Food and the Marine). These regular reviews help ensure that the reliefs remain fit-for-purpose, reflect current government policy, continue to be consistent with EU state aid policy, and to allow for other considerations.
On that basis, a decision of the further extension of the consanguinity relief is expected to be taken in advance of Budget 2024/Finance Bill 2023.
