IFA Farm Business Chairman Martin Stapleton has welcomed the announcement by Minister for Agriculture, Michael Creed and Minister for Finance Paschal Donohoe that the stamp duty relief measure for farm consolidation, secured by IFA following Budget 2018 will commence from August 1.
This consolidation relief was among the measures sought by IFA to minimise the impact on farmers of the Budget 2018 increase in commercial stamp duty to 6%.
The new Stamp Duty Relief for farm consolidation allows for a 1% rate of stamp duty where a land transaction qualifies for a “Farm Restructuring Certificate” for the purposes of Capital Gains Tax Relief on Farm Restructuring.
Martin Stapleton said the implementation of this measure will be a welcome relief for farmers who have been anxiously awaiting its commencement in order to complete important land transactions. He said it will increase opportunities for farmers to consolidate their holdings and is important in the context of the Government’s commitment to encourage and land mobility, farm restructuring and the promotion of on-farm investment.
The Farm Business Chairman said it is important to note that, while the relief cannot be applied for until after August 1, it will apply in relation to all transactions that meet the criteria undertaken from January 1st 2018. This means that if the 6% stamp duty rate was paid on a transaction that meets the criteria and was undertaken after January 1st 2018, a reimbursement can be applied.
A separate stamp duty relief for long term leases will commence from July 1st.
This measure was sought by IFA and included in Budget 2015 but was delayed due to finalising administrative arrangements for collecting EU State Aid data, which necessitated legislative change.