Dáil Éireann Debate, Wednesday - 29 November 2017
101. Deputy Tom Neville asked the Minister for Finance if a stamp duty overpayment on an inter-family farm land transfer in respect of persons (details supplied) in County Kerry will be refunded; and if he will make a statement on the matter. [50771/17]
Amharc ar fhreagraThere are two reliefs from the charge to Stamp Duty on inter family transfers of farm land – young trained farmer relief and consanguinity relief.
Young trained farmer relief provides a total relief from Stamp Duty, i.e. no duty is payable. I am advised by Revenue that based on the information available, the conditions for granting the young trained farmer relief did not apply in the case of the person concerned.
Consanguinity relief, for deeds of transfer signed before 11 October 2017 between related persons, reduces the amount of Stamp Duty payable by half. For deeds of transfer executed on or after 11 October, consanguinity relief reduces the rate of duty payable to 1% (instead of 6%). A number of conditions must be satisfied before the relief can be claimed.
I am advised by Revenue that in the case of the person concerned, the Stamp Duty Return made relates to a deed executed on 29 September 2017. The conditions that had to be satisfied before consanguinity relief could apply were that the person transferring the land was, at the time of transfer of the land, under 67 years of age and the person to whom the land was transferred must farm the land for at least 6 years or lease it to someone who will farm it for at least 6 years. In addition, the person farming the land must hold a specified qualification or obtain it within a period of four years from the date they get the land or spend at least 50% of their time farming land.
I am advised that based on the information available to Revenue, the conditions for granting consanguinity relief were not satisfied in this instance and that the relief was not claimed on the Stamp Duty return. There is, therefore, no overpayment of Stamp Duty and consequently no refund is due.
I should mention that while the Finance Bill 2017 abolishes the condition that the person transferring the land be under 67 years of age, this provision will only apply when the Bill becomes law and will then only apply to deeds executed on or after the date the Bill is enacted.
