An independent TD has asked the Minister for Finance to consider introducing measures enabling agricultural land sales to be subject to a 3% rate of stamp duty.
The current rate for non-residential property, which includes agricultural land, is 7.5%.
Minister Donohoe responded to the parliamentary question from Independent TD for Laois/Offaly, Carol Nolan.
He outlined that “farming is first and foremost a business”, as he referred to section 655 of the Taxes Consolidation Act 199.
“For the purposes of the Tax Acts, farming shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains of farming shall be charged to tax under Case I of Schedule D.”
He said farmers could avail of “generous and targeted” reliefs, specific to the agricultural sector.
The minister added that they remove in full or reduce the rate payable on the acquisition of farmland.
- The young trained farmer stamp duty relief;
- Consanguinity relief;
- Farm consolidation relief.
“These reliefs are kept under regular review by my department and are renewed, updated and added to in line with government policy and prevailing circumstances, when necessary.”
“I have no plans to introduce a special stamp duty rate for agricultural land,” he concluded.
- Transferring a site to a child – Read this article, which covers stamp duty, CAT/Gift Tax and cases where the site value exceeds €500k.
- How the Green Cert is required for Stamp Duty Exemption to those under 35 years of age on land transfer. Read this article.
- Budget 2021 changes relating to taxation measures covering Farm Consolidation Relief, Consanguinity Relief and Residential Development Refund scheme. Read this article.
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