Dáil Éireann Debate, Tuesday - 21 May 2024
217. Deputy Niall Collins asked the Minister for Finance if stamp duty exemptions can be granted to those who start farming at 35 years of age, if working full time; if conditions (details supplied) will suffice for an exemption and other reliefs; and if he will make a statement on the matter. [22663/24]
View answerI am advised by Revenue that there are a number of reliefs available to Farmers under Stamp Duty, Capital Acquisitions Tax (CAT) and Capital Gains Tax (CGT) if certain qualifying conditions are met.
In relation to Stamp Duty specifically, I assume that the Deputy is referring to the Young Trained Farmer Relief, provided for in Section 81AA of the Stamp Duties Consolidation Act 1999 and which sets out the qualification criteria in relation to age, agricultural qualifications, and the use of land.
In that regard, a transferee must:
- be under 35 years of age on the date of execution of the deed of transfer of the land
- hold a trained farmer qualification, as defined in section 654A TCA 1997 and;
- intend to spend at least 50% of his or her normal working time farming the transferred land and retain ownership of that land, for a period of at least five years from the date of execution of the deed of transfer.
Further information in relation to Stamp Duty and other reliefs available to farmers, including the Young Trained Farmer Relief, is available on the Revenue website at www.revenue.ie/en/property/stamp-duty/exemptions-and-reliefs/reliefs-for-farmers.aspx.
There are also a number of other reliefs available to farmers in relation to Capital Acquisitions Tax (CAT) and Capital Gains Tax (CGT).
Agricultural Relief reduces the taxable value of the property including land on which CAT is calculated by 90%, and is available where the agricultural property consists of at least 80% of the property value on the valuation date except where the property consists only of trees and underwood. For gifts and inheritances taken after 1 January 2015 and where the valuation date is also after 1 January 2015, the property must be farmed on a commercial basis for at least six years or leased to someone who farms the property on a commercial basis once the lessee has a qualifying agricultural qualification or is farming the agricultural property for at least 50% of their normal working hours.
Further information in relation to agriculture relief can be found on the Revenue website at:
www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/index.aspx
Separately, if a person inherits or receives a gift of business property, they may qualify for Business Relief on the transfer of a business, a share in a business or the shares or securities of a company carrying on a business. Business Relief also reduces the taxable value of the business property on which CAT is calculated by 90%.
Agricultural property which does not qualify for Agricultural Relief may qualify for Business Relief. Further information in relation to Business relief can be found on the Revenue website at:
www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/business-relief/index.aspx
In the context of CGT, Retirement and/or Farm Restructuring Reliefs are available subject to certain criteria. Retirement Relief provides for the exemption to CGT where the person disposing of the asset(s) is aged 55 or over and both owned and used the asset(s) for the ten years prior to the disposal. The operation of the relief, as well as the various thresholds available, differ between the disposal of a farm to a child and disposals to anyone other than to a child.
Further information in relation to Retirement Relief can be found on the Revenue website at the following link: www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/disposal-of-a-business-or-farm.aspx
Farm Restructuring Relief provides for the exemption to CGT where the person disposes of or exchanges farmland in order to consolidate an existing holding. To qualify for this relief, the first sale or purchase must occur between 1 January 2013 and 31 December 2025. The next sale or purchase must occur within 24 months of the first sale or purchase.
Further information in relation to Farm Restructuring Relief can be found on the Revenue website at the following link: www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/farm-restructuring-relief.aspx
Should the person concerned require any further clarification they can contact Revenue online via MyAccount or by phoning the Stamp Duty Helpline 01 738 3646, Tuesdays, and Thursdays (10am to 1pm).
