6% duty on some farm sales

Irish Examiner - Farming - - NEWS - Stephen Cado­gan

S o m e f a r m s a l e s wi l l b e in­cluded in the non-res­i­den­tial prop­erty trans­fers for which stamp duty was tre­bled from 2% to 6% in the Bud­get. The new 6% rate (which did not come as a com­plete sur­prise, a rise had been leaked days in ad­vance of the bud­get) came into ef­fect on Wed­nes­day, with no “grand­fa­ther­ing” of legally bind­ing con­tracts en­tered into prior to this date. Mov­ing the Dail mo­tion for the vote which ap­proved the 6% tax, Min­is­ter for Ed­u­ca­tion and Skills Richard Bru­ton said: “The pro­vi­sions are very clear. They pro­vide a num­ber of very sub­stan­tial re­liefs for farm land. They in­clude the case of the young farmer, and the case of a per­son re­lated by con­san­guin­ity. There is also a re­fund should the land be dis­posed of and used for hous­ing. “While some farm­ers will pay the 6% if they choose to ex­tend their hold­ings by pur­chas­ing land in cir­cum­stances other than those I have out­lined, on the other hand, sub­stan­tial in­vest­ment is be­ing put in to strengthen the po­si­tion of farm­ing, par­tic­u­larly in light of the pres­sures which are com­ing from Brexit. It is worth re­call­ing that back in 2 008 , stamp duty of 9% ap­plied.” An amend­ment pro­posed by I n d e p e n d e n t T D M i ch a e l Fitz­mau­rice, that sales of land for farm­ing not be sub­ject to the 6% stamp duty, was de­feated.

The 6% stamp duty is sub­ject to a 66% re­fund for prop­erty that is de­vel­oped for res­i­den­tial use within 30 months (de­tails will be in the Fi­nance Bi l l ) . A l s o , c o n s a n g u i n i t y stamp duty re­lief at 1% for in­ter-fam­ily farm trans­fers to close re­la­tions, such as fa­ther­son or aunt-niece, is be­ing main­tained for a fur­ther three years, en­abling many to avoid the 6% tax. Min­is­ter Dono­hoe also an­nounced the young trained farmer stamp duty ex­emp­tion is main­tained. Ac­cord­ing to the Gov­ern­ment, ex­clud­ing all sales of agri­cul­tural land from 6% stamp duty would re­quire state aid ap­proval from the EU.

Min­is­ter Richard Bru­ton: some farm­ers will pay 6% stamp duty.

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