Backlash over stamp duty on sale of farms: Vast majority of farms will be hit with 6pc tax
Farmer saved €50k buying €1m farm on budget day
FINANCE Minister Paschal Donohoe is facing a major backlash after it emerged the massive hike to commercial stamp duty will apply to the sale of farmland.
Farm organisations and Opposition politicians believe the Government has failed to factor in the impact the move will have on rural Ireland.
However, Mr Donohoe has insisted there is “no intention of making anybody collateral damage”.
In his Budget the minister raised the stamp duty on commercial land transactions from 2pc to 6pc in a bid to raise €376m that will be used to fund social welfare increases and income tax reductions.
There was initial confusion within government as to whether this would directly impact the sale of farmland but Mr Donohoe has confirmed it will with the exception of inter-family sales and where the buyer is under 35 years of age.
As a result Kildare-based auctioneer Paddy Jordan told the Irish Independent the “vast majority” of farms sold will now be subject to the new higher rate of tax.
“We see some young farmers buying who will qualify for the 0pc relief and carry out valuations for inter-family transactions, but the vast majority of land sales are to people who do not qualify for such reliefs,” he said.
Mr Jordan sold a large farm for over €1.3m on Budget Day.