Stamp Duty clarity for farmers who have bought land recently
The Minister for Finance Pascal Donohoe has clarified in the Dail how much Stamp Duty farmers, who bought land recently but are still waiting for the transactions to go through, must pay.
There was much confusion after Budget Day when the Minister for Agriculture Michael Creed said the increased Stamp Duty levels would not apply to farm land.
However, the Minister for Finance said all agricultural land sales are included in the hike in commercial Stamp Duty, which jumped from 2pc to 6pc in the Budget.
Further confusion reigned for farmers who had bought land before the Budget and who were waiting for the deal to go through - as to whether they would pay the old rate of 2pc or the new rate of 6pc.
The Minister for Finance said in the Dail this week that it is the Government's the intention that anyone who has signed a contract for a land transaction avails of the previous 2pc rate.
He made the remarks after Sinn Fein Finance Spokesperson Pearse Doherty said he was aware of one person who has been invoiced by revenue for the increased rate after he purchased a large quantity of land to ensure a farm was commercially viable.
“The last transaction went through on budget night, and an invoice was generated by Revenue for 6pc stamp duty.
“The individual does not have the additional €10,000 or €11,000 to pay the 6pc rate.