Planned relief from stamp duty hike to consolidate farm holdings yet to commence
A new measure introduced to allow a farmer to claim relief from stamp duty where he or she sells and purchases land for the purposes of consolidating an existing farm holding is still waiting commitment.
Minister for Finance Paschal Donohoe said this week that the measure is subject to a commencement order after a full consideration of any administrative or EU state-aid requirements.
However he noted that the measure will apply to all transactions which took place after January 1, 2018, so farmers who consolidate their holdings prior to the commencement of the relief will still be eligible.
Minister Donohoe said his Department is continuing to explore the potential State Aid aspects of the measure and said this “may take a little time”.
How the measure will work
For the relief to operate, there must be both a sale and a purchase of land within a period of 24 months of each other.
Where other qualifying conditions are satisfied, stamp duty will only be paid to the extent that the value of the land that is purchased exceeds the value of the land that is sold.
A reduced rate of 1pc will be charged on the excess, if any, of the purchase value.