Dáil Éireann Debate, Tuesday - 21 September 2021
198. Deputy Carol Nolan asked the Minister for Finance if he will make the young, trained farmers stamp duty relief permanent as this would provide reassurance regarding future costs for farm families planning the transfer of their farm; and if he will make a statement on the matter. [45008/21]
Amharc ar fhreagraStamp duty relief for young trained farmers provides for a total exemption from stamp duty (the normal rate of stamp duty that arises on the acquisition of non-residential property, which includes farmland, is currently 7.5%) on either the transfer by gift, or purchase, of farmland (and associated buildings) where the recipient is a trained farmer under the age of 35 and meets other specified criteria. It is legislated for in Section 81AA on the Stamp Duties Consolidation Acts 1999 (SDCA 1999), titled “Transfers to young trained farmers”,
As with all such reliefs, it is of course subject to a number of terms and conditions. Section 81AA was introduced in Finance Act 2000, has since been extended on a number of occasions, and is currently due to expire on 31 December 2021.
The primary domestic and EU policy objective of this relief is to encourage the inter-generational transfers of agricultural land, with a secondary purpose being to increase the level and rate of adoption of new more productive and more environmentally friendly farming practices.
The normal extension of tax reliefs is three years, which, if it were to be extended in the upcoming Budget (and associated Finance Bill) would see this relief next expire on 31 December 2024. There have been some calls from the farming sector for longer extensions, of this and other farming focussed reliefs.
My position remains that extending such 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) in order to ensure it remains fit-for-purpose, reflects current government policy, continues to be consistent with EU state aid policy, and other considerations.
I expect that my decision on the extension of this relief will form part of my speech introducing Budget 2022.
