Stamp Duty relief for long-term leases and farm consolidation to be signed into law
Following consultation with the EU Commission on State Aid clearance, a commencement order will be signed for the Stamp Duty relief for farm consolidation, which was contained in Finance Act 2017.
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. If the sale takes place before the purchase, then relief will be given at the time of purchase.
However, if the purchase takes place first, then stamp duty will have to be paid but can subsequently be refunded when the sale takes place.
A number of qualifying conditions must be satisfied before the relief can apply.
The most important condition is that Teagasc must issue a certificate stating that a sale and purchase or an exchange of farmland was made for farm consolidation purposes.
This is the certificate that is currently required in relation to the capital gains tax relief.