STAMP DUTY HIKE HURTING FARMERS
FARMERS and investors will “sit in front of their solicitors in shock” once they realise the implications of the hike in stamp duty for commercial land from 2% to 6%.
That’s according to Ballymote solicitor William Henry who believes the farming community needs to come together and show opposition before the law is enacted.
Under the provisions of the Budget announced last week, Stamp Duty relating to non-Residential property rose overnight from 2% to 6%.
Only in certain circumstances is the Stamp Duty exempt: the person receiving the property/farm has to be no older than 35 years and hold a farming qualification.
Stamp Duty of 1% only applies if the farmers younger than 67 years who are transferring to a blood-relative.
In addition, in order to qualify for the 1% Stamp Duty Consanguinity Relief, the person receiving the land must hold a specified qualification or spend at least 50% of their time farming land.
William Henry believes these conditions mean most farmers will have to pay the full 6% Stamp Duty.
“For example a person taking land valued at €300,000 was liable for Stamp Duty at 2%, i.e. €6,000, but will now pay €18,000, unless 1) that person is under 35 years and a trained farmer or 2) Consanguinity Relief applies, but as you can see there are many restrictions,” said William.
“There was no leeway seemingly afforded to anyone in the middle of finalising a transaction. The powers that be seem to suggest that the bad times are behind us and that we can now cope with this increase. What world are they living in? The Government seems to be saying that they are not making any drastic changes but this change will have a massive impact not alone on farmers but on many others,” he said.
“We live in a time where we need investors to come into small towns and villages, open up Hotels, Restaurants, shops and so on. This is a massive increase and can be another hurdle putting investors off.
“People need to come together and show opposition. People will sit in front of their solicitors in years to come in shock, once they begin to realise what happened. Now is their opportunity to voice their objections.
The solicitor pointed to the fact that TD Michael Fitzmaurice’s motion calling for farmland to be excluded was already struck down.
“It is still not too late. People in farming communities need in particular to let their voices be heard,” he added.