Budget 2018: Has it just got a lot more expensive to buy land?
The Minister for Finance Paschal Donohue's announcement in today's Budget that Stamp Duty on commercial property transactions will increase from 2pc to 6pc.
And unbeknown to many, 'commercial' property includes farmland. However, the Minister for Agriculture Michael Creed told journalists today in his post-Budget press briefing that agricultural land would not be included in the new measure.
However, Minister Donohoe never mentioned any exemptions to the Stamp Duty increase for farmland, making it look likely that farmland will continue to be classed as 'commercial' when it comes to Stamp Duty calculations.
Stamp Duty on non-residential property was lowered to 2pc in 2011 to get the commercial property market moving again.
In the Dail today, Donohoe said that it worked and now that the market is performing strongly, the time is right to focus resources elsewhere.
The Minister said the new rate which comes into force at midnight is still below the maximum rate of 9pc charged between 2002 and 2008.
And if that is true, from midnight tonight the price of land will be a lot more expensive.
According to tax expert Declan McEvoy, IFAC Accountants, the impact on farmers is that those who purchase land will now liable to the higher rate of Stamp Duty.